Event log entry information:

Source:	DCOM
Event ID:	10016
User:	domain\tfsservice
Description:	The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID {61738644-F196-11D0-9953-00C04FD919C1} to the user domain\tfsservice SID (…). This security permission can be modified using the Component Services administrative tool.

Reason:
This happens after installing SharePoint Services 3.0. The CLSID is used by the service “IIS WAMREG admin Service” and the tfsservice Account needs to have the local activation right on this service.

Solution:

1. Open “Administrative Tools” > “Component Services”
2. Expand nodes “Computers” > “My Computer” > “DCOM Config”
3. Locate entry “IIS WAMREG admin Service”
4. Right click > Properties
5. Tab “Security” > “Launch and Activation Permissions” > “Edit…” Button
6. Add tfsservice Account if not already present and grant permissions “Local Launch” and “Local Activation”