JSI Tip 2599. When you start Windows 2000, you receive 'Directory Services Cannot Start'?

When you start Windows 2000, the screen may blank and you receive:

LSASS.EXE - System Error, security accounts manager initialization failed because of the following error:
Directory Service cannot start. Error status 0xc00002e1.

Please click OK to shutdown this system and reboot into directory services restore mode, check the event log for more detailed information.

The event log may contain:

Event ID 700 "NTDS (260) online defragmentation is beginning a pass on database NTDS.DIT".

Event ID 701 stating that it completed successfully.

Event ID 101 "NTDS (260) the database engine stopped."

Event ID 1004 "The directory was shut down successfully."

Event ID 1168 "Error: 1032 (fffffbf8) has occurred. (internal ID 4042b). Please contact Microsoft product support services for assistance."

Event ID 1103 "The windows directory services database could not be initialized and returned error 1032. Unrecoverable error, the directory can't continue."

You have set permissions on the drive root, NTDS folder, and/or Active Directory log files to be too restrictive.

To resolve the problem, restart your domain controller and press F8 to select the Directory Services Restore Mode.

Make sure that the Administrator and System accounts have Full Control on the NTDS folder and Active Directory log files and that the System account had Full Control on the drive root and on the %SystemRoot% folder.

NOTE: If you changed the locatation of the Active Directory or its' log files during installation, use these paths instead.