xp_sqlagent_proxy_account: Specified user cannot login

From: Roberto Kohler (rkohler_at_intranetslab.com)
Date: 07/13/05 

Date: Tue, 12 Jul 2005 22:09:26 -0400

I am trying to configure SQL so that a user without admin privileges can
execute xp_cmdshell.
I understand I needed to do the following:
---------------
use master
EXEC msdb..sp_set_sqlagent_properties @sysadmin_only = 0
EXEC master..xp_sqlagent_proxy_account N'SET'
, N'domain'
, N'proxyuser'
, N'password'
exec sp_grantdbaccess 'domain\testUSR', 'testUSR'
grant exec on xp_cmdshell to testUSR
---------------

but EXEC master..xp_sqlagent_proxy_account
gives me the following error:
"Error executing extended stored procedure: Specified user can not login"

- The SQL Server Agent Service Startup account is domain\Administrator
- I've tried configuring a proxyuser with admin privileges as well as one
without admin privileges and I get the same result.
- I unselected the checkbox 'Only users with sysadmin privileges under SQL
Enterprise Manager - SQL Server Agent - Properties - Job System
- I am running SQL SP3a
- @@VERSION is
Microsoft SQL Server 2000 - 8.00.760 (Intel X86)
Dec 17 2002 14:22:05
Copyright (c) 1988-2003 Microsoft Corporation
Standard Edition on Windows NT 5.0 (Build 2195: Service Pack 4)

Any ideas would be appreciated

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