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EventID 1202: Security policies are propagated with warning. 0x4b8 : An extended error has occurred.

Issue:
Security policies are propagated with warning. 0x4b8 : An extended error has occurred.

This happen on a Windows 2000 server not connected to a domain.

I have tried several things to solve this issue:

  • Tried to repair the database that could be corrupted using 
    esentutl /g %Windir%\security\Database\Secedit.sdb
    But the database does not seems to be corrupted
  • Tried to delete the logs, then the logs and database with no success
  • Some site pointed the fact that a renamed administrator account could cause this issue, which is my case.
    I have tried to had an ‘Administrator’ fake account and disabling it but that did not solve the issue.
  • I tried to open the security policy (secpol.msc) to modify a behaviour (rename administrator account) but I can’t connect/open the folder Account Policies (Windows cannot open the local policy database. An unknown error occured when attempting to open the database.) Ref :http://support.microsoft.com/kb/816109
  • Tried to delete the database and the logs and then execute
    secedit /refreshpolicy machine_policy /enforce
    with no luck (Ref : http://3dgpu.com/forums/lofiversion/index.php?t3321.html)
  • Then the only thing that have worked for me was to copy a valid database from a working Windows (same OS version) that also is not connected to a domain, replace the database and then execute
    secedit /refreshpolicy machine_policy /enforce

Tada! Problem solved.

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