Disable UAC if you are doing a technical upgrade from the same machine where SQL is hosted.

When doing a technical upgrade running Microsoft Dynamics NAV CSIDE client on the same machine as your SQL server, please run the CSIDE client with either UAC turned off or with full administrator rights (Run as administrator). The reason why this is important is because, when connecting locally from a Vista/Windows 2008 server to SQL Server, it will strip down the Windows token from, among other things, honoring builtin\Administrator membership, unless connecting from an elevated command (run... Read the full text.
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