SQL Agent jobs that run a PowerShell script need to run with a proxy account, so I can adhere to Windows permissions constraints.  However, the SQL Agent job returned the following error message

Unable to start execution of step 1 (reason: Error authenticating proxy DOMAIN\account_name, system error: The user name or password is incorrect.).  The step failed.

So obviously I double checked the account user name and password.  I did this using a CMD window and executed the command below to try to start a new cmd window.  This was successful, so I knew there was nothing wrong with the account/password.

runas /user:DOMAIN\account_name cmd

The Solution

The account used to start the SQL Agent account was causing the problem.  So the message I was getting above was a bit of a red-herring.  I changed the SQL Agent service account and restarted.  Jobs using teh proxy account were now working!  I would also add that the SQL Serve and teh SQL Agent are now using the same domain account.  Not sure if this is important.



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