Managed Service Account Error 1297

I am testing Managed Service Accounts in Server 2008 R2.  I followed the TechNet step-by-step article to created the account, assign it to a computer, and installed it on the local server. I verified it is created in AD.

The MSA was automatically granted the log on as a service right. When I try to start a service, like Disk Defragmenter or any other I get this error:

Error 1297:  A privilege that the service requires to function properly does not exist in the service account configuration.

The only link I can find is this:

http://social.technet.microsoft.com/Forums/en-US/419ba006-4413-4036-8c49-252b08593131/service-fails-to-start-error-1297-and-7000

What am I missing?