Failed to compress the database. Operation Failed [sde.default]

Error Message

The following error occurs when the 'sde' user compress using ArcCatalog tools."Failed to compress the database
Operation Failed [sde.default]"

Cause

If the 'sde' user does not have 'View Server State' permission at the instance level in SQL Server 2005, compressing with ArcCatalog will fail.

Note:
Compressing with 'sdeversion -o' works successfully.

Solution or Workaround

1. On the machine where SQL Server 2005 is installed, navigate to Start > Programs > Microsoft SQL Server 2005 > SQL Server Management Studio.
2. Highlight and right-click the instance and click Properties.
3. In the Server Properties window:
   A. Select 'Permissions'.
   B. Highlight the 'sde' user. Verify the user has 'View Server State' permission available.
   C. Click the check box under 'Grant' for the 'View Server State' permission.