SharePoint Search Crawler Error After Installing .NET 3.5 SP1

I installed Microsoft .NET 3.5 SP1 on SharePoint 2007 today, which was a prerequisite for an updated 3rd party application that we use with SharePoint. After the upgrade, I attempted to perform a Full Crawl but the crawl only took a few seconds and only Access Denied errors were displayed in the crawl log. After investigating the Event Viewer on the SharePoint Search server, the following error was found:

Event Type: Warning
Event Source: Office Server Search
Event Category: Gatherer
Event ID: 2436
Date:  1/27/2011
Time:  10:29:16 PM
User:  N/A
Computer: SHP1
The start address cannot be crawled.
Context: Application ‘SSP’, Catalog ‘Portal_Content’
Access is denied. Verify that either the Default Content Access Account has access to this repository, or add a crawl rule to crawl this repository. If the repository being crawled is a SharePoint repository, verify that the account you are using has “Full Read” permissions on the SharePoint Web Application being crawled.   (0x80041205) For more information, see Help and Support Center at

After some investigation, A fix was found in KB896861 by adding theDisableLoopbackCheck key to the registry. Once the registry key was added and the IIS Admin service was restarted, I attempted to perform another full crawl and this time it was successful!

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