The scenario I am facing is that I have an ASP.NET web service (.NET 3.5) running on an W2k3 server which is using the CacheManager/IsolatedStorage store to store a persiste
The root cause of the issue is that the account which the web service was running under did not have a local user profile created thus the user assembly store didn't exist. The simple fix was just to logon to the box with the service account.