Couldn't log on as the ASPNET user 
The error message for the 1385 error code is very specific, it means that there is a problem with the login type, and in this case, the login type is 'batch'. Taking away the logon as a batch job right is the only way I can reproduce this error.
I'd check to see that there isn't an overriding domain security policy in effect by checking with the domain admins if you are part of a Windows domain. There is also a 'deny logon as a batch job' right that takes precedence over granting the 'logon as a batch job' user right.
If neither one of these resolves the problem, then try turning on security auditing logon events in the audit policy section of the local security policy snap-in. The logon events will then appear in the security log and will probably provide quite a bit more information.