Windows Server 2008 R2 on VM: Windows cannot access the specified device, path, or file. You may not have the appropriate permissions to access the item

Newly built Windows Server 2008 R2 server on VM had strange issues. I logged in as account that’s part of domain admins. I supposed to have local administrative privileges. But when try to open any administrative tools (like services, event log), I get this error message:

Windows cannot access the specified device, path, or file. You may not have the appropriate permissions to access the item

It was driving me crazy. It turn out to be I can’t logon as local administrator either.

After half day of itching my mind, the following two things resolved the my issue.

1. Turned off Internet Explorer Enhanced Security setting for Administrators and Users
2. Turned off User Account Control (in Safe Mode)

Bizarre experience though!