I had this same problem last week, which resolved itself after I enabled impersonation. Now, I've moved this box to a different location and am now receiving it again. However, this time it is much less descriptive. The only error I'm receiving is:
An error occurred loading a configuration file: Failed to start monitoring changes to '\\share'
I've changed both the web server and file server's local administrator password to what it should be and also the power user that connects between. I've even hit the share from the local machine using both accounts and can see the files no problem.
Any ideas what can be causing this?
TIA!