I get this error if I try to activate my 2-month-old Windows installation.
slmgr /atoin an elevated command prompt gives me the same:
0x80070005 acccess denied.
slmgr /dli says:
Line 1333 char 5 permissions denied.
This should not be happening. I am using TrueCrypt for full system encryption. I have always used it and everything has always been OK on other installations - the Windows activation mechanism as well as all other programs do not even ever detect that they are all in an encrypted environment. It's always been transparent.
I have a couple suggestions. First, I would talk to your encryption provider. It may be that this is the cause of your issue.
If this doesn't work or this isn't the issue, contact Microsoft and open a case with them. They will be able to help you out and since it is an activation issue they should do it for free.
Truecrypt recommends that you activate before encrypting. I tested the theory a while back in a VM. Activating an unencrypted XP, Vista, or 7 install works, then after encrypting it stays activated. But sometimes if you encrypt before activating, it will fail. Try decrypting the disk, activating, then re-encrypting the disk. It will take a while, but it may be your only option if a restore is out of the question. Just make sure you set the encryption software to wipe free space during the re-encryption.
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