Global.asax not allowing identity impersonation?

Visual Studio 2005, SQL Server 2000, ASP.NET/VB.NET

Not allowed to use the ASPNET machine account in SQL Server (very
strict environment).

Need to use Windows authentication, so we use "Identity
Impersonate=true" in the web.config file.

Trying to implement a system-wide error trapping mechanism. Nothing
fancy, just writing to a log file. The recommended procedure was to
define "CustomErrors=On" in web.config and manually add a "Global.asax"
file to the solution that included code in the "Application_Error"
section to handle the error.

This worked fine on the development box, but when moved over to the
test environment (the one *without* the ASPNET user account), it fails
with the error listed at the bottom of this post.

Is it because the "Global.asax" file is compiled and the ASPNET user
account is the one that performs those tasks? But what about "Identity
Impersonate"? Is it being overridden? Has the impersonation not taken
place yet? (Again, there is no fancy code in Global.asax; I even
removed all code that I had added and had the same result:

"Error [28000] [Microsoft][ODBC SQL Server Driver][SQL Server]Login
failed for user '<machine-name>\ASPNET'"

(If you wish, you may refer to a prior, related thread located here:
http://groups.google.com/group/microsoft.public.dotnet.framework.aspnet/browse_frm/thread/fd7291cddea9e3a4/efed08acd2d6fc85?
)

Please help. Thank you.

.

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