Access denied error when creating new FSA archive folder

Hello,

I am working on a dev env and when I attempt to create a new folder on a volume I get :

Failed to save or update details for folder "\" in the directory service.

Could not mark the folder with File System Archiving information.

Access denied.

This is EV 9.0.4 on a W2k3 SP2 x32 server the license is good and working in another env without issue. Perms are good and checkout in deployment scanner. I have checked firewall and it is off. One other thing to mention, the server I am creating the folder for is a DC but since the VSA is a domain admin in this env that should take care of the perms. Can you guys think of anything else I am missing?

Thanks,

Travis