Next text has been taken from the next link:
http://support.microsoft.com/kb/950100/en-us
Issue 6: Consider the following scenario: You try to install the Microsoft Dynamics CRM 4.0 Server with a Security Account running under a Domain User account on Windows Server 2008. The Microsoft Dynamics CRM 4.0 installation tries
to add the domain user to the IIS Worker Process Group (IIS_WPG). Windows Server 2008 runs IIS 7.0. However, Microsoft Dynamics CRM 4.0 uses IIS 6 compatibility mode. In this scenario, the Setup process fails, and you receive the following error message:
Action Microsoft.Crm.Setup.Server.ConfigureAspNetAccountAction failed. System.ComponentModel.Win32Exception: The group name could not be found.
This problem occurs because IIS 6 compatibility mode no longer has the IIS_WPG group.
Well, in past days I had the same issue, but additionally I had a Network Load Balancing environment where I was asked to make full CRM 4.0 installation for two physical servers.
When you read the instructions to get a NBL deployment for CRM 4.0 you can notice that you need
to install the Microsoft Dynamics CRM 4.0 Server with a Security Account running under a Domain User account on Windows Server 2008, so how can you solve this? I wrote an entry in my company's blog where you can read the solution. Unfortunately it's
in Spanish, may be somebody could translate it:
http://syndeo.com.mx/blog/?p=48