What's the command you are running to get this error?

I have tried this from the Central Admin pages, extending onto a virtual  server. I have also tried this from the command line (stsadm, extendvs not sure of the syntax at the moment.)

So you've extended  the server  onto a virtual  server and then gone to create  a top level team site?

No. Part of the process of extention creates a top level site  on the virtual  server. Before the process finishes, I get the error.

I have just been made aware that I cannot use the UI if I am using AD account creation mode--I need to use stsadm. I tried using stsadm to extend the vs, but I received the same error. Is there another function of stsadm that I should use?

I've found this: www.sharepointu.com/.../tm.htm
I will try it today.
(Sorry about spamming the list with all these emails.)

Ok, I followed the instructions on the aforementioned site, but I am still having issues. User wssadmin is an administrator on the wss server, has DB Creator and Security Administrator rights in SQL server  (I have since switched to SQL server 2000 SP4), is a member of the sharepoint  administration group, and has been delegated control of the WSSUsers OU in Active Directory. WSSUsers sit at the same level as Users in the AD tree. Below are the commands I am entering:

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o unextendvs -url "http://dev-smk-wss" -deletecontent

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o setadminport -port "9999" -admapidname "WssAdminAppPool" -admapidtype "configurableid" -admapidlogin "ida\wssadmin" -admapidpwd "*" -admapcreatenew

iisreset

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o setconfigdb -ds "dev-smk-wss" -dn "WssConfigDb" -addomain "ida" -adou "WSSUsers" -adcreation

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o email -outsmtpserver "dev-smk-ad" -fromaddress "wssadmin@... " -replytoaddress "wssadmin@..." -codepage "65001"

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o extendvs -url " http://dev-smk-wss" -ownerlogin "ida\wssadmin" -owneremail "wssadmin@..." -ds "dev-smk-wss" -dn "WssSiteDb" -apidname "WssSiteAppPool" -apidtype "configurableid" -apidlogin "ida\wssadmin" -apidpwd "*" -donotcreatesite -apcreatenew

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o addpath -url "http://dev-smk-wss" -type "wildcardinclusion"

"C:\Program Files\Common Files\Microsoft Shared\web server extensions\60\BIN\STSADM.exe" -o createsite -url "http://dev-smk-wss/Top" -ownerlogin "ida\smk" -owneremail " smk@..." -sitetemplate "STS#0"

The site  creation fails here with an error  message "Access Denied." In the Application Log on dev-smk-wss, I see the fillowing error:
Event Type: Warning
Event Source: Windows SharePoint Services 2.0
Event Category: None
Event ID: 1000
Date: 3/28/2006
Time: 2:39:34 PM
User: N/A
Computer: DEV-SMK-WSS
Description:
#1e0046: Adding user "smk4" to OU "WSSUsers" in domain "ida" FAILED with HRESULT -2147024891.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

There are no errors in the logs on the AD server.

I believe this could be a security issue. Check that the account wssadmin has permission to create  users in the OU

I am able to add a user directly to the WSSUsers OU while logged in as wssadmin.

On the last line. The one that was giving me an access denied error, Change the ownerlogin arguement from DOMAIN\username to username.

"C:\Program Files\Common Files\Microsoft Shared\web server  extensions\60\BIN\STSADM.exe" -o createsite -url " http://dev-smk-wss/Top" -ownerlogin "smk" -owneremail " smk@..." -sitetemplate "STS#0"

This works, and created a user "smk6" in the WSSUsers OU and completed the site  creation.

Also, part of the problem was that I was executing the commands logged in as a user that did not have rights to the WSSUsers OU. This was part of the reason that the site  creation was failing.