Add the following NTFS permissions on the Raiser's Edge Web Service server:

 
Directory or File Permissions Default Location
[Drive]\Program Files\Blackbaud\The Raisers Edge 7RXWMC:\Program Files\Blackbaud\The Raisers Edge 7
[Drive]\Program Files\Blackbaud\The Raisers Edge 7\SysDBFULLC:\Program Files\Blackbaud\The Raisers Edge 7\SysDB

For a full list of NTFS permissions needed for Blackbaud NetCommunity please see BB411212
This issue is addressed in version 7.85.5026, patch 6 Download the latest version from our website.
Securing your web server against attacks is one of the most important jobs the network administrator can do.  Blackbaud can not be held responsible for any unauthorized access to your web server.  It is highly recommended that you consult with a professional Internet Security engineer to ensure you have fully secured your web server.  Please review the attached link from Microsoft for basic information on securing Microsoft Web Servers.  

http://msdn.microsoft.com/security/securecode/webservices/default.aspx
  
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