Altiris Dagent not executing any jobs when service log on as local 'SYSTEM' but it executing when service configured with domain account

Hi All,

I have a very wired issue with one of my windows 2008 r2 server ( which was working previously ) , i have configured Altiris Dagent service to log on as 'LOCAL SYSTEM' then none of the job is executing ,job just running forever without any sucess or failure ,when i use my domain account which have admin privilege on the system job executing as normal.I have granted permission to LOCAL SYSTEM to 'log on as a service' in security policy and also SYSTEM is not part of the 'deny log on as service' .Any idea what might be causing this issue .

Thanks In advance.

Sajeesh