After the initial setup, virtual account "NT SERVICE\SQLSERVERAGENT" was set to run sql agent service, as default.

But, under that account sql agent would not start (access denied).

After I changed to "LOCALSYSTEM", sql agent service started successfully.

If I try to change back to "NT SERVICE\SQLSERVERAGENT" I get "Access denied" as soon as I click on "Apply" button in the service "Log On" dialog.

Even though I got "access denied" the account indeed was changed from "LOCALSYSTEM" to "NT SERVICE\SQLSERVERAGENT",

but cannot start (Access denied).

Just for the test, i tried to give "Full control" on all drive letters to "NT SERVICE\SQLSERVERAGENT",

and still got "Access denied" from the sql agent service.

Although I could not give full control to Program Files, Program Files (x86), and Windows - "Access denied".

I am logged-in windows with my domain account which has local admin rights.

I even tried with SUBINACL:

C:\Program Files (x86)\Windows Resource Kits\Tools>Subinacl /service eventlog /grant=SQLSERVERAGENT=S

eventlog : new ace for nt service\sqlserveragent

eventlog : 1 change(s)

Elapsed Time: 00 00:00:00

Done: 1, Modified 1, Failed 0, Syntax errors 0

Last Done : eventlog

C:\Program Files (x86)\Windows Resource Kits\Tools>

But still cannot start agent service. Note "1, Failed" in the suinacl output.

Do you know where the map "ServerName\EventLog" should be, or is on your server?

Maybe that would help, because it seems I don't have that folder at all (Win7 64bit).