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When using the Select By Location, Select by Attribute or Select tool for more than 100 features, the following error message is displayed:
"An unexpected error occurred in the Select By Location command. Unable to create logfile system tables. User perhaps lacks permissions or resources to create tables [Microsoft OLE DB Provider for SQL Server: The specified schema name "SDEREADER" either does not exist or you do not have permission to use it.]"
The schema set in the database is not the same as the username.
ArcSDE is hard-coded to look for a schema that matches the user name within the database specified. This problem only occurs with ArcSDE 9.1 Service Pack 1 and SQL server 2005, and is a result of the new concept of user schemas with SQL server 2005.
If users are going to be owning/creating data or making large selection sets that require user logfiles to be created, ensure that the user and schema name match exactly.
See the link in the Related Information Section below for a white paper with more information.
Ensure that all new users have the same default schema name as their username within each database.
See following example of the Login properties under the User mapping page in SQL Server Management Studio. This illustrates how the default schema name is set when adding a login as a user within a particular database. Default schemas need to be set for all users within each database.