UpdateUptimeRegKey: Operating system error 5(Access is denied.) encountered. SQL Express Service Not Starting throwing Error.

Error Messages:
The SQL Server (DEVAPP) service terminated with service-specific error 3417 (0xD59).
FCB::Open failed: Could not open file d:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\mastlog.ldf for file number 2. OS error: 5(Access is denied.).

UpdateUptimeRegKey: Operating system error 5(Access is denied.) encountered.

FCB::Open: Operating system error 5(Access is denied.) occurred while creating or opening file 'd:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\mastlog.ldf'. Diagnose and correct the operating system error, and retry the operation.

FCB::Open failed: Could not open file d:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\master.mdf for file number 1. OS error: 5(Access is denied.).

FCB::Open: Operating system error 5(Access is denied.) occurred while creating or opening file 'd:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\master.mdf'. Diagnose and correct the operating system error, and retry the operation.

Root Cause:
1) Converting a FAT partition to NTFS will make permissions issue arose.
2) May be SQL Server is Installed in a Compressed folder/files ( The data folder, and all database files were blue ).

Solutions:
1) Go to C or D:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Data, right-clicked on each file and make sure that "Compress contents" was NOT checked. When you check "ready to archive", you will get a different error (instead of 26 it was 40) when creating a new database.

2) Run SQLdiag found in C:\Program Files\Microsoft SQL Server\90\Tools\Binn, to get some hints.

3) Right Click SQLExpress in Services.msc and changed the Log On to "Local System Account" with the box check.

4) See-> Windows control panel -> Performance and maintenance -> Administrative tools -> Services ->right click on SQLEXPRESS -> Properties -> Under Logon tab check Local logon and allow interact with local services!

5) Granting the “Network Service” account Full Permission on the “C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Data” folder will do.

6) Check http://support.microsoft.com/kb/929665 for this error in Windows Internal Database.

7) VIA Protocol should be disabled (unless of course you use VIA Hardware.)