>Now the solution presented in the article works, however it requires a reboot of the server which is unacceptable for my client as it is a small business that only has one server, so the entire network is down in the process of configuring the security. I am wondering if using the impersonation section of the Web.config would resove this, but it does not mention that as a solution in this particular KB article.

It should be a one time fix. Can't you just reboot it once at night after everyone goes home? (Better yet, install Terminal Services and reboot it from home)