I have only hit this on one Windows 2003 server – never seemed to be a problem on my other servers that are predominately Window Server 2008 & R2.
When I open Powershell V2 on the Ws2003 server I was getting “AuthorizationManager check failed.”
It turns out the problem was because the .ps1 file pointed to by my $profile existed but was empty.
Initially, your $profile file (..\WindowsPowershell\Microsoft.Powershell_profile.ps1) does not exist so Powershell is happy.
As soon as you create your $profile file which I do by using the following command:
new-item -path $profile -itemtype file –force
which creates an empty Microsoft.Powershell_profile.ps1 file I get the problem.
If you then attempt to execute your $profile file using “.$profile”, or if you exit and restart Powershell which attempts to run your new $profile file then you will get the “AuthorizationManager check failed.” message.
Adding at least one command to Microsoft.Powershell_profile.ps1 will fix the problem.
That only took me about 4 hours to solve.