Summary
I encountered the following error while configuring Windows SharePoint Services (WSS) 3.0 through MachPanel.

Create Portal Failed.
Detail: Error Creating Portal
Details: Security Group policy error. The server is unwilling to process the request

Applies To
MachPanel all versions
Hosted SharePoint Extension (SPE)

Cause
Single machine was acting as multiple server roles (e.g. Domain Controller (DC) + SQL Database + MachPanel Control Server + DNS + WSS 3.0)

Solution
The above error can be resolved by separating the Domain Controller (DC). In other words, no software should be installed on DC and it should be separate.

Minimum deployment architecture for successful WSS 3.0 provisioning through MachPanel Provisioning System includes at least three server machines:
For Example:

1. Server 1: Domain Controller (Active Directory Domain + DNS)
2. Server 2: MachPanel Control Server + Database Server
3. Server 3: WSS 3.0 + MachPanel Remote server

Note: Similar resolution steps can be followed for resolving issues regarding Enterprise Extensions i.e. Hosted Exchange Extension (HEE), Hosted Exchange Extension (HEE) for HMC 4.0, BlackBerry Extension (BBE) etc.

Please consult Installation & Service Preparation Guides that explain the details in this regard, available for download at:
http://kb.machsol.com/Downloads/