The BAM web service needs to be able to access the SQL NS binaries in order to set up alerts. The following will set up the BAM portal so that you can define alerrts via the portal.

Grant Permissions to Microsoft SQL Notification Services bin folder

Grant the web service identity “Traverse Folder / Execute Files”, “List Folder / Read Data”, “List Folder / Read Data”, “Read Attributes”, “Read Extended Attributes” and “Read Permissions” permissions for the following bin folder:

• In SQL 2000, the bin folder can be found at <SQL NS install location>\<Installed version>.
• In SQL 2005, the bin folder can be found at <SQL Server install location>\90\NotificationServices\<Installed version>.