1. Removed the quotes from ssosrv registry key for ImagePath key (as per research on other sites)
2. Made the SSO service account a member of DomainAdmins account.
3. Rebooted the server, stopped the service, re-entered the credentials and password for the service account in Services.msc and started the service
4. Configured the service account in Central Adminstration - Service Accounts for SSO
All the steps you can possibly find on google I had tried and still was getting the below error in the ULS Logs and event viewer.
02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 Medium NetUserGetInfo said User username exists 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 Medium Destroying CCommandEx 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 Medium Destroying CSessionEx 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 High ::RpcServerUseProtseq() failed with rpc error 1721 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 High Error code is: -2147023175 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 Critical One or more RPC services for the Microsoft Single Sign-on (SSOSrv) service failed to start. The error code returned was 0x800706b9. For more information, see the Microsoft SharePoint Products and Technologies Software Development Kit (SDK). 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 High CRPCService::RegisterRPCInterface() failed to register ISingleSignonConfiguration 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 High Error code is: -2147023175 02/22/2010 20:43:40.65 SSOSRV.EXE (0x1518) 0x162C SharePoint Portal Server SSO 0 Critical User domain\username failed to configure the single sign-on server. The error returned was 0x800706b9. Verify this account has sufficient permissions and try again.
Log Name: ApplicationSource: Office SharePoint ServerDate: 2/22/2010 2:23:07 AMEvent ID: 6517Task Category: SSOLevel: ErrorKeywords: ClassicUser: N/AComputer: servername.domain.com Description:User domain\username failed to configure the single sign-on server. The error returned was 0x800706b9. Verify this account has sufficient permissions and try again.
Resolution:
http://support.microsoft.com/kb/246784
1. Go to this registry path HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Rpc\Internet
"Ports" key was having the value 5000-50002 with no spaces ( like other articles which mentioned to remove spaces )
2. I changed the value to 0-65335 without any spaces or hitting the enter key, Click OK
3. Restart the server.
Now SSO was Configured without any error. If you check the above registry key, the values will be changed back to what it was before. Dont change them again, if your SSO is configured, dont temper with that registry again.