Tech Tips: HTTP Error 401.1 - Unauthorized: Access is denied in CRM 4.0?

Read the following links if you've gotten the abovementioned error while setting Microsoft CRM 4.0 (in my case it was two servers configuration, one for CRM 4.0 Enterprise and one for SQL 2005 SP3)

http://thecrmarchitect.com/2009/01/23/crm_401_unauthorized/#comment-105

http://www.shanmcarthur.net/crm/crm4-articles/crm4-installation-and-upgrade-tips