I recently ran into this issue with multiple deployed IIS sites on a single server (Windows 2008 R2). Our environment has each site running on different application pools, but in some cases, those pools can be assigned the same identity.
Our application creates a key if one does not exist, and places it in a container with a name based on the current identity. The first deployed site always worked, but if we deployed another site into another app pool with the same identity, the second would fail.
Turns out that when the key is stored, Windows gives full access to the user "IIS APPPOOL\AppPoolName", and not the identity that we have assigned to the pool.
So, our solution was to give the container explicit permissions to the current identity (this is similar to @Webmixer's answer, the only difference is in the CryptoKeyAccessRule
):
CspParameters cspParams;
cspParams = new CspParameters(PROVIDER_RSA_FULL);
cspParams.KeyContainerName = CONTAINER_NAME;
cspParams.Flags = CspProviderFlags.UseMachineKeyStore;
cspParams.ProviderName = "Microsoft Strong Cryptographic Provider";
CryptoKeyAccessRule rule = new CryptoKeyAccessRule(System.Security.Principal.WindowsIdentity.GetCurrent(), CryptoKeyRights.FullControl, AccessControlType.Allow);
cspParams.CryptoKeySecurity = new CryptoKeySecurity();
cspParams.CryptoKeySecurity.SetAccessRule(rule);