Fixing IPSEC Error 2: “The system cannot find the file specified”

Fixing IPSEC Error

Estimated reading time: 2 minutes

After rebooting a resource-constrained Terminal Server, Remote Desktop Protocol (RDP) logins became extremely slow. Investigation revealed that the IPSEC Services were not running. Attempts to manually start the service triggered the following error:

“Could not start the IPSEC Services service on Local Computer.
Error 2: The system cannot find the file specified.”

Additionally, the TCP/IP stack entered blocking mode, halting all network traffic. Disabling IPSEC temporarily restored connectivity, but restarting the service caused the issue to recur.

Root Cause

This error typically occurs when the IPSEC registry keys are missing or corrupted—specifically:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\IPsec\Policy\Local

Without this key, the IPSEC service cannot initialize, leading to Error 2 and blocked TCP/IP traffic.

Step-by-Step Fix: Rebuild IPSEC Policy Store

  1. Open Registry Editor
    Press Win + R, type regedit, and press Enter.
  2. Navigate to IPSEC Registry Path
    Go to: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\IPsec\Policy\Local
    If the IPsec key is missing, skip to step 6.
  3. Delete the Corrupted Subkey
    Right-click Local and choose Delete. Confirm deletion.
  4. Exit Registry Editor
  5. Re-register the Policy Store DLL
    Press Win + R, type: regsvr32 polstore.dll, and press Enter.
  6. Reboot the Server

Video Tutorials

Glossary

TermDefinition
IPSECInternet Protocol Security – a suite of protocols for securing IP traffic
Error 2Windows system error indicating a missing file or registry entry
polstore.dllDLL used to manage IPSEC policy storage
RDPRemote Desktop Protocol – remote access to Windows machines
iLOIntegrated Lights-Out – remote server management interface

Frequently Asked Questions

QuestionAnswer
Why does IPSEC block all TCP/IP traffic?When IPSEC enters block mode, it discards all traffic not explicitly allowed by boot-time policies. This happens when the policy store is missing or corrupted.
Is it safe to delete the registry key?Yes, if the key is corrupted or incomplete. Re-registering polstore.dll restores the default structure.
Can this issue recur after reboot?Yes. If IPSEC is not properly rebuilt, the service may fail again. Ensure the registry is populated and the DLL is registered.
Should I disable IPSEC permanently?Only as a last resort. IPSEC is critical for secure communications. Rebuilding the policy store is the preferred fix.


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Andrew Armstrong

Founder of TechyGeeksHome and Head Editor for over 15 years! IT expert in multiple areas for over 26 years. Sharing experience and knowledge whenever possible! Making IT Happen.

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