I was working on modifying SharePoint URLs again which if your not sure how to do I have another post about that here. My problem came up when I was updating the Shared Service Provider (SSP) The complete error message that appears in the application event log has this description:
Access is denied. Check that the Default Content Access Account has access to this content, or add a crawl rule to crawl this content. (0x80041205)
For some this is a very frustrating error message because it does not provide a whole lot of information. The solution that solved my problem had to do with the IIS Loopback Check. In essence the Loopback Check is designed to thwart off potential security attacks to the server. It is important to note that this problem for me was only found while utilizing Windows Integrated Security. The error message comes up because the Search Provider tries to login and hit the web server so much and so quickly that the server thinks it is being attacked and therefore blocks the traffic and login.
There are two options to fix this problem. The first is to simply disable the loopback check but this poses a serious security issue if your site is heavily utilized and moreover public. The second and more secure solution is to specify allowed sites. I would highly suggest taking the time to add in allowed sites since with either solution you have to edit the registry. For the actual fixes I have posted the link to the Microsoft KB article below that contains the process to follow. The article says it only applies to IIS 5 and 6 however it resolved my problem on IIS7 as well. I think less people would have a problem with this in SharePoint if it were titled better.
http://support.microsoft.com/kb/896861
Please let me know if this does or does not work for you
-Brent