SCCM 2007 inventory/management point failure

Having an issue with my single primary site/Management point,  case is currently opened with Microsoft. It starts like this...

Recently I noticed clients have not been reporting in to the site. This include hardware, software inventories, etc. BITS crashed my console and threw errors, the documented fix was to uninstall BITS, reboot and re-install on the server- done. Then noticed ALL SQL logins have been removed with the exception of a SMSremoteusers read only account!! Microsoft suggested re installing db. - done.

A side note is we have a SCCM 2012 VM Test environment - segregated from our production environment by VLAN and ACOLS. Test environment has own DC, etc. But I don't see any type of interference. Hope someone can help!

PROD Server
SQL 2008
IIS 7
SCCM R3
Management Point
Reporting Point
Distribution Point
Deployment Service

Windows Server Standard SP2 64bit - Physicial Box
8GB RAM
2 Processors 2.66GHz

MPcontrol.log

Successfully performed Management Point availability check against local computer. SMS_MP_CONTROL_MANAGER 11/3/2012 10:27:20 AM 5288 (0x14A8)
Call to HttpSendRequestSync failed for port 80 with status code 404, text: Not Found SMS_MP_CONTROL_MANAGER 11/3/2012 10:32:20 AM 5288 (0x14A8)
Http test request failed, status code is 404, 'Not Found'. SMS_MP_CONTROL_MANAGER 11/3/2012 10:32:20 AM 5288 (0x14A8)

MP_Status.log

Mp Status: processing event: SMS_PolicyAgent_BitsPolicyDownloadFailed, for machine: machinename MP_StatusManager 11/3/2012 11:02:04 AM 9492 (0x2514)
MP Status: SVF file written successfully to "E:\Program Files (x86)\Microsoft Configuration Manager\inboxes\statmgr.box\statmsgs\KQODD45Q.SVF" MP_StatusManager 11/3/2012 11:02:04 AM 9492 (0x2514)

MP_Policy.log

CPolicyManagerHandler::HandleMessage(): SetComplete(DISCARD) called. MP_PolicyManager 11/2/2012 9:56:52 PM 8592 (0x2190)
CMPDBConnection::Init(): IDBInitialize::Initialize() failed with 0x80004005 MP_PolicyManager 11/2/2012 9:56:54 PM 8592 (0x2190)
======================================= MP_PolicyManager 11/2/2012 9:56:54 PM 8592 (0x2190)

MPDB ERROR - CONNECTION PARAMETERS
SQL Server Name : SERVER
SQL Database Name   : SMS NAME
Integrated Auth : True

MPDB ERROR - EXTENDED INFORMATION
MPDB Method : Init()
MPDB Method HRESULT : 0x80004005
Error Description   : Login failed for user 'NT AUTHORITY\SYSTEM'. Reason: Server is in single user mode. Only one administrator can connect at this time.
OLEDB IID    : {}
ProgID   : Microsoft OLE DB Provider for SQL Server

MPDB ERROR - INFORMATION FROM DRIVER
SQL Server Name   : SERVER
Native Error no.  : 18461
Error State    : 1
Class (Severity)  : 14
Line number in SP : 1
MP_PolicyManager 11/2/2012 9:56:54 PM 8592 (0x2190)
=======================================
MP_PolicyManager 11/2/2012 9:56:54 PM 8592 (0x2190)

MP_Location.log
MPDB ERROR - CONNECTION PARAMETERS
SQL Server Name : SERVER
SQL Database Name   : SMS
Integrated Auth : True

MPDB ERROR - EXTENDED INFORMATION
MPDB Method : Init()
MPDB Method HRESULT : 0x80004005
Error Description   : Login failed for user 'NT AUTHORITY\SYSTEM'. Reason: Server is in single user mode. Only one administrator can connect at this time.
OLEDB IID    : {}
ProgID   : Microsoft OLE DB Provider for SQL Server

MPDB ERROR - INFORMATION FROM DRIVER
SQL Server Name   : SERVER
Native Error no.  : 18461
Error State    : 1
Class (Severity)  : 14
Line number in SP : 1
MP_LocationManager 11/2/2012 9:56:53 PM 8592 (0x2190)
=======================================
MP_LocationManager 11/2/2012 9:56:53 PM 8592 (0x2190)
CHandleLocationRequest::CreateReply failed with error (80004005). MP_LocationManager 11/2/2012 9:56:53 PM 8592 (0x2190)
MP LM: Message discarded MP_LocationManager 11/2/2012 9:56:53 PM 8592 (0x2190)
CMPDBConnection::Init(): IDBInitialize::Initialize() failed with 0x80004005 MP_LocationManager 11/2/2012 9:56:53 PM 8592 (0x2190)
======================================= MP_LocationManager 11/2/2012 9:56:53 PM 8592 (0x2190)

IIS W3SVC1/uex121103.log


2012-11-03 16:16:18 10.x.xx.x CCM_POST /ccm_system/request - 80 - 10.x.xx.xxx ccmhttp 200 0 0 3
2012-11-03 16:16:18 10.x.xx.xx BITS_POST /CCM_Incoming/{9F78C7C0-35E7-40F8-9A07-5EF9A8767F31} (bits_error:,501,0x80070005) 80 - xx.xx.xx.xxx Microsoft+BITS/7.5 501 0 0 3
2012-11-03 16:16:18 10.x.xx.xx BITS_POST /CCM_Incoming/{22206B66-F87F-45DE-B174-CD3DC447E3CD} (bits_error:,501,0x80070005) 80 - 10.1.xx.xxx Microsoft+BITS/6.7 501 0 0 1
2012-11-03 16:16:18 10.x.xx.xx HEAD /SMS_MP/.sms_pol {45b5690e-6732-4c9e-8930-85dd3fdd85c0}.14_00 80 - 10.x.xx.xx Microsoft+BITS/7.5 404 0 2 208
2012-11-03 16:16:18 10.x.xx.xx CCM_POST /ccm_system/request - 80 - 10.x.xx.xx ccmhttp 200 0 0 3 

I hate to say this but if you are working with CSS, you should continue working with them to resolve all of your issues. The main reason for this is that anything that we say or tell you to do. I might step on what the CSS team are trying to do and therefore it might take longer to get things fixed. Plus the CSS team will likely be faster at fixing your issues then the forums.

No worries, I appreciate the reply and the resource of the forum. CSS has provided a script to recover my db logins that were mysteriously removed. Waiting for transfer back to SCCM Engineer to to resolve the MP issue. I'm leaning toward an issue with IIS 7.0 and authentication to the shares. I will post the resolution once the issue is resolved.

For one your databse is in "Single User" mode you can not have your database configured this way as SCCM will not work.

Thanks for the reply Cap. That is very true and the setting was changed. My apologies for not updating that information.
 
UPDATE:

Recovered SQL db logins - MP/BITS still having issues.

MP_Status.log

Mp Status: processing event: SMS_PolicyAgent_BitsPolicyDownloadFailed, for machine: machinename MP_StatusManager 11/3/2012 11:02:04 AM 9492 (0x2514)
MP Status: SVF file written successfully to "E:\Program Files (x86)\Microsoft Configuration Manager\inboxes\statmgr.box\statmsgs\KQODD45Q.SVF" MP_StatusManager 11/5/2012 7:02:04 AM 9492 (0x2514)

UPDATED RESOLUTION
 
Inventory is running again. Resolution was not a pleasant one but it did resolve my issues. First, a re-installation of BITS and finally remove and re add site system role Management point. Thanks to all who read and commented on this issue.

Thanks for posting an update.  Often times this is the case where you have to uninstall the MP role and reinstall it.  The trip up I usually have is remembering to watch the log files to see it successfully uninstall before starting the reinstall.

Does anyone know what the root cause to this situation is so I can avoid it in the future?