I changed the MSSQLSERVER service to run under a domain account and that resolved the issue.

Interestingly enough, on other SQL Instances running on Win2K3 - we run the MSSSQLSERVER service...

The SQL Server services actually are configured to run under the Network Service account.

I think you are on to something as I am getting a login failure being logged in...

I am having the same issue (unable to read the sql ERRORLOG trhough SSMS or sp_readerrorlog).

sp_readerrorlog error message:

Msg 22004, Level 16, State 1, Line 0

error log location not found

Msg 22004,...