I had this issue today on a sql 2005 server and it appears to be a common problem:

 ”Unable to use SQL Server because ASP.NET version 2.0 Session State is not installed on the SQL server. Please install ASP.NET Session State SQL Server version 2.0 or above.”

My first reaction was search the internet… and that led me down the wrong path. Sometimes its just better to read the documentation. I can’t believe I had become the type of person not to read the instructions. I love that stuff! Well, anyway my solution was running the following command which I put together using the documentation on this site (http://msdn.microsoft.com/en-us/library/ms229862.aspx).

But seriously, don’t just run this following command. Go look at the link above as it actually explains everything in detail.

aspnet_regsql -d <databasename> -ssadd -sstype c -U <username>