A service I have written that uses BITS (Background Intelligent Transfer Service) to auto update itself is having a problem on some machines (Windows 7 so far).

I have been investigating and have discovered that some of the jobs that my service adds to the bits queue are failing immediately with the error code 0x80072efd (a connection with this server could not be established). The is not problem with connecting to the server for the download as it works fine on the same machine using IE (or any other web browser) and other clients can connect and update from the same server.

I tried using the BITSADMIN.exe tool to add the jobs manually and they worked ok. I then changed the account my service was running under to the network service account so the bits jobs would be created with a different owner and the jobs completed successfully.

My question is I don't want to run my service as this account as it wont have the required local permissions, so how to I change the permissions of the local system user to allow it to download from the HTTP source, I'm not aware of any way of this being restricted for this account but it obviously is.