ASP.NET does not work with the default ASP.NET account on a domain controller

The EDI service is installed on a Domain Controller and every time the EDI Verification Tool is run an error similar to the one listed below is returned:

Error Reference to undefined entity 'nbsp'

The web application you are attempting to access on this web server is currently unavailable. Please hit the "Refresh" button in your web browser to retry your request.

Other error messages from the event viewer:

aspnet_wp.exe could not be launched because the username and/or password supplied in the processModel section of the config file are invalid.

aspnet_wp.exe could not be started.

The problem is related to the domain controller; one of the issues with IIS on a domain controller is the domain controllers have no local accounts, and the ASP.NET process account is a local account.

To avoid this problem, demote the Domain Controller to an application server.