You get the following error messages when starting BITS:

Event ID 7024 “BITS terminated with service-specific error 2147942405 (0x80070005)”
Event ID 10010 The server {4991D34B-80A1-4291-83B6-3328366B9097} did not register with DCOM within the required timeout.

The problem is security settings on the folder C:Documents and SettingsAll UsersApplication DataMicrosoftNetwork

verify that SYSTEM has full access to this folder and the path that leads to it.

Links:

http://www.faqshop.com/misc/default.htm?http://faqshop.com/misc/bits/event%20id%207024.htm#Top
http://www.nusnet.nus.edu.sg/sus/adminguide.htm