"User Profile Service service failed the logon. User profile cannot be loaded."

I just spend a long time fighting this problem and wanted to share how I fixed.

I was seeing this error on a Win7 standalone system (local profiles, not logging into a domain).  I had two profiles on it that worked fine, but if I tried to create a new profile, I would be unable to logon to it and would get the "User Profile Service failed the logon" message.

I tried the steps in KB http://support.microsoft.com/kb/947215 but they did not fix the problem.

After looking through the event logs, I found the following 1509 error in the Application log:

Windows cannot copy file \\?\C:\Users\Default\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm to location\\?\C:\Users\TEMP\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm. This error may be caused by network problems or insufficient security rights.

 DETAIL - Access is denied.

After binging iesqmdata_setup0.sqm I ran across this article:

http://social.technet.microsoft.com/Forums/en-US/w7itprogeneral/thread/e87aafae-c3aa-48df-b188-0ba161fcb9c7

The suggestion there:

"I suggest you check the Advanced Security Settings for the C:\Users\Default folder. Ensure you check the box "Replace all child object permission with inheritable permissions from this object"."

Fixed this problem for me.  I am now able to logon with the newly created accounts just fine.

Hopefully this will help others as well!