Use the older version 9.3 syntax:import arcgisscriptinggp = arcgisscripting.create(9.3)Change the permissions on the Network Server account with the following steps:The issue here is that the FLEXnet Licensing Service (which Esri now uses at 10.1, but was not used in 10.0) doesn’t have the proper execution permissions set to it such that the “Network Service” account can start it.Ensure that you are logged in as a user with administration privileges on the machine.From the windows Start menu, select run and enter ‘cmd’. Right-click on “cmd.exe” and select “Run as Administrator.”In the command prompt, run the following command: sc sdshow "FLEXnet Licensing Service"This will print out the DACL permissions that are registered with that service: D:(D;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;NU)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BA)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;SY)(A;;CCLCSWRPLOCRRC;;;IU)S:(AU;FA;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;WD)We need to insert “(A;;CCLCSWRPWPDTLOCRRC;;;WD)” into the permission string, such that it becomes: D:(D;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;NU)(A;;CCLCSWRPWPDTLOCRRC;;;WD)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BA)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;SY)(A;;CCLCSWRPLOCRRC;;;IU)S:(AU;FA;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;WD) NOTE: The user’s DACL string may vary, and edits to the string should be done carefully.To register the DACL with the service run the command: sc sdset "FLEXnet Licensing Service" ${your original DACL string with the new permission string inserted}For the example above you would enter: sc sdset "FLEXnet Licensing Service" D:(D;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;NU)(A;;CCLCSWRPWPDTLOCRRC;;;WD)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BA)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;SY)(A;;CCLCSWRPLOCRRC;;;IU)S:(AU;FA;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;WD)You should see a [SC] SetServiceObjectSecurity SUCCESS. That's it. Network Service should now run without error.