From: richfirman on
Hello, I need some help.

I set up the SQL proxy agent account with EM to run as the same domain
account that the SQL agent service uses. This account is a member of
the local admin group on my server. As I said, it is the same account
as the SQL service agent. I verified this with
exec xp_sqlagent_proxy_account N'GET'

I then created 'limiteduser' to have public permissions on master and
exec permissions on xp_cmdshell within master.

I then logged into Query analyzer with 'limiteduser' and tried to
execute 'exec master..xp_cmdshell 'batch file'' I get the following

Msg 50001, Level 1, State 50001
xp_cmdshell failed to execute because LogonUserW returns error 1326.
please make sure the service account SQL Server running under has
appropriate privilege. For more information, search Book Online for
topic related to xp_sqlagent_proxy_account.

I have searched the interweb and can't figure out what I may be doing