You cannot deploy Microsoft Dynamics CRM by using an account that does not have local administrator permissions on Microsoft SQL Server

Symptoms

When you deploy Microsoft Dynamics CRM 4.0 or Microsoft Dynamics CRM 2011 by using a user account, your user account must have local administrator permissions on Microsoft SQL Server. However, you expect that local administrator permissions on SQL Server are not required.   For more information about this requirement, click the following article number to view the article in the Microsoft Knowledge Base:

946686 How to assign the minimum permissions to a deployment administrator in Microsoft Dynamics CRM 4.0

Resolution

This problem is fixed in the latest cumulative update rollup for Microsoft Dynamics CRM 4.0.
For more information, click the following article number to view the article in the Microsoft Knowledge Base:

949256 Microsoft Dynamics CRM 4.0 updates and hotfixes

This problem is fixed in the Microsoft Dynamics CRM 2011 release.

Follow the workaround steps below to install Microsoft Dynamics CRM without needing local administrator permissions on the Microsoft SQL Server.

Workaround

Warning Serious problems might occur if you modify the registry incorrectly by using Registry Editor or by using another method. These problems might require that you reinstall your operating system. Microsoft cannot guarantee that these problems can be solved. Modify the registry at your own risk.
To deploy Microsoft Dynamics CRM by using an account that does not have local administrator permissions on SQL Server, follow these steps:

1. Add the IgnoreChecks registry key to the computer that is running Microsoft Dynamics CRM so the installation can proceed when an error is shown in the Environmental Diagnostic Wizard (EDW):

   1. Click Start, click
      Run, type regedit, and then click
      OK.

   2. In the registry, locate the following subkey:
      
      HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSCRM

   3. Right-click MSCRM, point to
      New, click DWORD Value, and then type
      IgnoreChecks.

   4. Double-click IgnoreChecks, and then type 1 in the Value data field.
      

2. Make sure that the Microsoft SQL Server services are running on the computer that is running SQL Server.

3. Create a share on the computer that is running SQL Server to which that the Microsoft Dynamics CRM deployment administrator has access.
   Notes

   • This share is intended to be the permanent location of the Microsoft Dynamics CRM database data files.

   • The share name must match the directory name. For example, if the share is located at C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\CrmData, the share must be named "CrmData."

4. Add the SqlServerPathOverrides registry key to the computer that is running Microsoft Dynamics CRM. To do this, follow these steps:

   1. Click Start, click
      Run, type regedit, and then click
      OK.

   2. In the registry, locate the following subkey:
      
      HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSCRM

   3. Right-click MSCRM, point to
      New, click Key, and then type
      SqlServerPathOverrides.

   4. Right-click SqlServerPathOverrides, point to New, click String and enter the SQL server name as name.

   5. Double-click SqlServerPathOverrides, and enter the full local path of the share share as a value, such as C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\CrmData

5. On the File menu, click
   Exit to exit Registry Editor.

6. Ensure that the deployment administrator has been added as Content Manager to the SQL Reporting Server (see http://support.microsoft.com/kb/946677).

7. Add the deployment administrator as SQL login to the SQL instance Security account of the CRM server, with sysadmin permissions.

8. Make sure that the Service Account that is running the Microsoft SQL Service is given permissions to the share to which the CRM MDF file was copied. To check the effective permissions on the file share, follow these steps:

   1. Right-click the folder, and then select Properties.

   2. Click the Security tab, and the click Advanced.

   3. Click Effective Permissions, and then click Select.

   4. Enter the service account under which Microsoft SQL Server is running. (For built-in accounts, you can use "Network Service"' or "SYSTEM.")