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Event ID: 101 Source: NNTPSVC

The server was unable to add the virtual root '/<virtual folder>' for directory '/<directory>' due to the following error: <error description>. The data is the error code.

Data: <error code>
Error: "The parameter is incorrect" The first byte in the data section represents the error code in hex format. For example, Data: 000: 57 00 00 00 means hex code 57. In decimal this translates to 87 and Error code 87 has the description: "The parameter is incorrect" (see the link to Error code 87).

ME298848 provides suggestions on how to fix this problem.

Error: "The system cannot find the path specified". This issue may occur if the World Wide Web service (W3SVC) starts before the MSExchangeIS service. See ME259373 and Error code 3
My single server does everything with W2K small business server using exchange 2000. I was getting netlogon 5781, w3svc 101 (3 times), then nntpsvc 101.
I made netlogon dependent on DNS.
I made w3svc dependent on MSExchangeIS
I made nntpsvc dependent on MSExchange IS

After these changes the system remained stable. The netlogon and w3svc events went away. The NNTPSVC error continued. I then realized that I do not need NNTP, so I stopped it and switched it to manual. Obviously, no more nntpsvc events.
This event and others with sources related to Exchange (i.e. SMTPSVC W3SVC, etc..) are typical for Exchange 2000. This is caused by the Virtual Drive M: not being mounted before the Virtual Servers (OWA, SMTP and NNTP) are started with IIS. IIS is trying to locate the physical path of these virtual directories which doesn't exist until after the Exchange services start up. Once the services start, you can stop and restart the web service and refresh the IIS Manager screen and the STOP icons will disappear. I've confirmed this with Microsoft's Exchange team and they advised this is normal functionality.
Do no try setting the NNTPSvc service to depend on the MSExchangeIS service. The results were disastrous: after restart the server was totally irresponsive, with several Exchange services in "start pending" mode. This is why Microsoft is not recommending putting the dependency, otherwise a simple and easy solution. Do not play with services dependencies as it is possible to create loops.

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