>Using LocalSystem for the application pool seems a bit of a drastic solution. You could use temporary impersonation or delegation only where required.

Well, even with that, it doesn't work. And, that makes sense as this account should not exceed the boundaries of its own server.

>See http://msdn.microsoft.com/en-us/library/ff647404.aspx#paght000023_impersonatingusinglogonuser for an overview. (It also has a #C example of impersonation using LogonUser.)

Thanks, I'll take a look at it.

>If there is a user name and password on the remote machine that exactly matches the impersonating account then you should get the same permissions as that remote user.

This is what it is right now. But, when trying it, security restriction comes in place.