I have an application that accesses a database that lives in a different Win2K3 domain. The application creates a windows Identity and authenticates the credentials and then does impersonation so that the database access happens in the context of this impersonated users credentials.

Everything works great except the impersonation breaks clickOnce deployment. I am not totally sure exactly where or why but the app deploys and starts up but after the impersonation it tries to load an assembly and fails because the impersonated user does not have the necessary permissions. The application is running with Full Trust so I am not sure why it fails. If I install the application on the machine the old fashion way it works fine and if I add the impersonated users to the local administrators group (Just a debugging hack! Not an acceptable solution!) then it works fine as well but under the preferred deployment scenario which is to launch it as a clickOnce App, collect the alternate credentials at startup and then impersonate that users it dies with the following error.

Could not load file or assembly 'AppControls, Version=1.1.2412.17609, Culture=neutral, PublicKeyToken=null' or one of its dependencies. Access is denied.

Unfortunately the remote resource access does not sort out nicely so the Impersonation is done globally (kind of an afterthought) so it would not be easy to only do impersonation when accessing the remote resources. Any ideas how to deal with this would be appreciated.