Problem: The Application Pool that is configured for CAPSYS Websites needs to have a manual change made to it that will prevent the registry entry being deleted prematurely causing various issues with CAPSYS because it un-expectantly terminates the MDAC connection with the SQL database. When that happens, all kinds of various problems can surface. The change is simple and should be applied to all installations.
Solution: Go to the application pool that is assigned to the CAPSYS website. Open the Advanced Settings of the application pool, scroll down to "Process Model" you will see a setting called, Load User Profile. Change that value from False to True. Stop the Application Pool and restart. Stop the webserver and restart (Net Stop w3svc / Net Start w3svc). See screen shot attachment.