When you create a new task using Task Scheduler in Windows XP, error 0×80070005: Access is denied may occur when you click the Finish button. The detailed error message is given below.
The specific error is:
0×80070005: Access is denied.
Try using the Task page Browse button to locate the application.

This happens if the user account under which the task is scheduled to run, has a blank password. To resolve the problem, create a password for the user account which is used to run the task. Follow these steps:
1. Click Start, Control Panel, and double-click User Accounts.
2. Click the user account you want to add a password to, and then click Create a Password.
3. Type the new password and password hint (optional), and click Create Password.
4. Log off and then log on again.
5. Open Task Scheduler to reconfigure the task, and provide the user name and password when prompted.
Editor’s note: When there is only one user account in the system and if it has a blank password assigned, Windows will logon to the user account automatically at startup. As you’ve created a new password now, Windows will stop at the Welcome Screen at and requires you to type the password to login. To automatically logon to your user account at startup, see article Configure Windows XP to Automatically Login for more instructions. It works by storing the credentials in a protected area in the registry.
If the problem persists, see Microsoft KB 904423 to acquire a hotfix to resolve the error. To apply this hotfix, you must have Windows XP Service Pack 1 (SP1) or Windows XP Service Pack 2 (SP2) installed on the computer.
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Dear Ramesh: Regarding the hotfix in KB 904423, I am running XP with SP3. Windows Service Packs 1 & 2 don’t show up in my “add or remove programs” list. Is it ok for me to use this hotfix for the task scheduler problem it addresses (0×80070005,access denied, I do not have permission to perform the operation). For this hotfix you say one needs SP 1 or 2.
Thank you. –Robert Wind
Thank you so much. I have been trying to fix the error since 7 this morning it is now 6 in the evening. Yours was the only answer that worked and it was simple. Again thank you
ARE YOU KIDDING ME? THAT WAS SOOOOO EASY THAT EVEN MS 1/2 OF THE MS TECH SUPPORT STAFF COULDN’TY UNDERSTAND IT!!!!! I AM EVER SOOOOOO GLAD THEY ARE NOT IN THE CAR BUILDING BUSINESS, OTHERWISE NOBODY COULD POSSIBLY FIGURE OUT HOW TO EVEN STATR THE DARN THING!!!!!!!!!!!!!
Try this:
Control Panel > Administrative Tools > Local Security Policy > Local Policies > Security Options > Accounts: Limit local account use of blank passwords… > set to “Disabled”
Note: after doing this, it is necessary to go to the task properties, click the “Set Password” button, then click “OK”. Why? Only micro$oft knows…
Thanks, Ramesh. That was exactly the problem. Could Windows be any more cryptic?