SQL Server will take care of the permissions for you.
In terms of the SSPI issue, that's more often due to network
or other configuration issues. See the following:
How to troubleshoot the "Cannot generate SSPI context" error
message
http://support.microsoft.com/?id=811889
-Sue
On Fri, 15 Sep 2006 13:46:01 -0700, Dan
<Dan@discussions.microsoft.com> wrote:
>I just reinstalled SQL Server 2005 on a new box. During the install process I
>opted to use a Domain Account as the Service Account. Prior to the SQL
>install, I created a new domain user, with no explicit privilages or groups.
>
>Do I need to explicity add any privilages to this user, or does the SQL
>install process take care of that?
>
>When I try to access the server through SSMS from another machine, I am able
>to connect using SQL Auth, but when I try to use windows Auth as a domain
>admin, I get the following error:
>========================
>Cannot generate SSPI context. (Microsoft SQL Server)
>========================
>Could this be related the the Service Account not having correct privilages?
>
>Note: A prior install of SQL on this same box, using Local System as the
>Service Account, allowed Windows and SQL Auth.