Event ID error messages 10016 and 10017 are logged in the System log SharePoint 2010

Event ID error messages 10016 and 10017 are logged in the System log after you install Windows SharePoint Services 3.0

 source

You install Microsoft Windows SharePoint Services 3.0. When you view the System log after Windows SharePoint Services 3.0 is successfully installed, you see the following event ID error message logged one or more times:

Type: Error
Source: DCOM
Category: None
Event ID: eventID
Description:
The application-specific permissions settings do not grant Local Activation permission for the COM Server application with CLSID {CLSID} to the user DomainName\UserName SID {SID}. This security permission can be modified using the Component Services administration tool.

Note In this event ID error message, eventID is a placeholder for event ID 10016 or event ID 10017.

This issue occurs if the domain user account that you specified as the Windows SharePoint Services 3.0 service account does not have the Local Activation permission to the IIS Wamreg Admin Service. The event ID error messages 10016 or 10017 that are mentioned in the "Symptoms" section do not affect the functionality of Windows SharePoint Services 3.0.

You can safely ignore the event ID error messages 10017 or 10016 that are logged in the System log. If you want to prevent the event ID error messages from being logged in the System log, use the Component Services snap-in to enable the Local Activation permission to the IIS Wamreg Admin Service for the domain user account that you specified as the Windows SharePoint Services 3.0 service account. To do this, follow these steps:

1. Click Start, click Run, type dcomcnfg in the Open box, and then click OK.
2. Expand Component Services, expand Computers, expand My Computer, and then click DCOM Config.
3. Right-click IIS WAMREG admin Service, and then click Properties.
4. Click the Security tab.
5. Under Launch and Activation Permissions, click Edit.
6. In the Launch Permission dialog box, click Add.
7. In the Select Users, Computers, or Groups dialog box, change the location to the local server. Then, type the local security group WSS_WPG, click Check Names, and then click OK.
8. In the Permissions for UserName list, click to select the Allow check box that is next to Local Activation, and then clickOK two times.   

1. Run Regedit.exe and browse to "HKEY_CLASSES_ROOT\AppID\{61738644-F196-11D0-9953-00C04FD919C1}" key.

2. Secondary-mouse click on the {61738644-F196-11D0-9953-00C04FD919C1} key and select Permissions...

3. Click the Advanced button in the Permissions window and select the Owner tab. Under Change owner to select the local Administrators group and click on Apply, thenOK.

4. Then under Permissions window, select the local Administrators group and under Permissions for Administrators select Full Control and click on Apply, then OK.

NOTE: DO NOT modify/change any permissions for the TrustedInstaller account.

5. Re-run the Component Services management console (dcomcnfg.exe) and you should now be able to modify the settings for IIS WAMREG admin service package.

7.Use the following steps to grant the AX Business Connector Proxy User account the Launch and Activation rights

a.	Expand Component Services, expand Computers, expand My Computer, and expand DCOM Config.
b.	Right-click IIS WAMREG admin Service, and then click Properties.
c.	Click the Security tab.
d.	Under Launch and Activation Permissions, click Edit.
e.	Under Group or user names section, add the Business Connector Proxy User account, and select the user account
f.	Under Permissions for the Business Connector Proxy User account, select the Local Launch and Local Activation checkboxes
g.	Click OK and OK and close the Component Services management console.

source