MOSS: One or more errors deploying administration application pool credentials.

Problem:
When trying to change passwords for Central Administration and Timer service according to Technet instructions you get error:

One or more errors deploying administration application pool credentials. Please check the application event log and fix manually. The path specified cannot be used at this time. (Exception from HRESULT: 0x80070094)


Thoughts:
Surprisingly the application event log is as helpful as always when it comes to MOSS errors as it says:

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Application Server Administration job failed for service instance Microsoft.Office.Server.Search.Administration.SearchAdminSharedWebServiceInstance (a1356919-7519-4867-a715-6f7bbcb02d2b).

Reason: The path specified cannot be used at this time. (Exception from HRESULT: 0x80070094)

Techinal Support Details:
System.Runtime.InteropServices.COMException (0x80070094): The path specified cannot be used at this time. (Exception from HRESULT: 0x80070094)
at System.DirectoryServices.DirectoryEntry.CommitChanges()
at Microsoft.SharePoint.Metabase.MetabaseObject.Update()
at Microsoft.SharePoint.Administration.SPProvisioningAssistant.ApplyIisVirtualDirectorySettings(VirtualDirectory virtualDirectory, String path, AccessFlags accessFlags, String applicationName, String applicationPoolId, String[] scriptMaps)
at Microsoft.SharePoint.Administration.SPProvisioningAssistant.ProvisionIisRootVirtualDirectory(WebSite webSite, String path, AccessFlags accessFlags, String applicationName, String applicationPoolId, String[] scriptMaps)
at Microsoft.SharePoint.Administration.SPProvisioningAssistant.ProvisionIisWebSite(String serverComment, String[] serverBindings, String[] secureBindings, AuthenticationMethods authenticationMethods, String[] authenticationProviders, String path, AccessFlags accessFlags, String applicationName, String applicationPoolId, String[] scriptMaps, String sslCertificateSubjectName)
at Microsoft.SharePoint.Administration.SPMetabaseManager.ProvisionIisWebSite(String serverComment, String[] serverBindings, String[] secureBindings, Int32 authenticationMethods, String[] authenticationProviders, String path, Int32 accessFlags, String applicationName, String applicationPoolId, String[] scriptMaps, String sslCertificateSubjectName)
at Microsoft.Office.Server.Administration.SharedWebServiceInstance.Synchronize()
at Microsoft.Office.Server.Administration.ApplicationServerJob.ProvisionLocalSharedServiceInstances(Boolean isAdministrationServiceJob)

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
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If you open Internet Information Services (IIS) Manager you will probably also see pretty much nothing, just empty tree with empty Internet Information Services node and nothing under it. This is tightly related to the problem as if you look closely the error in the application event log, you see that the error occurs at ApplyIisVirtualDirectorySettings. If there is no Virtual Directory to apply settings to, no wonder an error occurs. Maybe the application log event was a bit useful after all.

Workaround:
Restart IIS 6.0, or you restart the process that uses the IIS ADSI provider.

Solution:
There is a hotfix KB946517 for this issue.