"User Profile Service service failed the logon. User profile cannot be loaded."

I just spend a long time fighting this problem and wanted to share how I fixed.
I was seeing this error on a Win7 standalone system (local profiles, not logging into a domain).  I had two profiles on it that worked fine, but if I tried to create a new profile, I would be unable to logon to it and would get the "User Profile Service
failed the logon" message.
I tried the steps in KB http://support.microsoft.com/kb/947215 but they did not fix the problem.
After looking through the event logs, I found the following 1509 error in the Application log:
Windows cannot copy file
\\?\C:\Users\Default\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm to location
\\?\C:\Users\TEMP\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm. This error may be caused by network problems or insufficient security rights.
 DETAIL - Access is denied.
After binging iesqmdata_setup0.sqm I ran across this article:
http://social.technet.microsoft.com/Forums/en-US/w7itprogeneral/thread/e87aafae-c3aa-48df-b188-0ba161fcb9c7
The suggestion there:
"I suggest you check the Advanced Security Settings for the C:\Users\Default folder. Ensure you check the box "Replace all child object permission with inheritable permissions from this object"."
Fixed this problem for me.  I am now able to logon with the newly created accounts just fine.
Hopefully this will help others as well!

Hi,
Thanks for sharing. We really appreciate your time and efforts. Hope your experience will help other community members facing similar problems.
Regards,
Leo  
Huang
TechNet Subscriber Support
If you are
TechNet Subscription user and have any feedback on our support quality, please send your feedback
here.
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    Note: This response contains a reference to a third party World Wide Web site. Microsoft is providing this information as a convenience to you. Microsoft does not control these sites and has not tested any software or information found on these sites; therefore, Microsoft cannot make any representations regarding the quality, safety, or suitability of any software or information found there.
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    DP-K
    ****Click the White thumb to say thanks****
    ****Please mark Accept As Solution if it solves your problem****
    ****I don't work for HP****
    Microsoft MVP - Windows Experience

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