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I've done my fair share of searching and still can not find a solution. I've created a simple workflow in Sharepoint 2007 designer. When I check the box "Start this workflow when a new item is created" I get error: access denied. I can upload the workflow when I uncheck this box however, I can not manually start the workflow. Same error.

I am a farm admin, site admin, collects admin. All options are checked in User Permissions for Web Application under Central Administration. I've tried the check in /out fix with no results. Please help!

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Have you tried to check out the workflow, and check it back in? It seems as though it might be a bug in SharePoint Designer 2007...

Link: http://www.elorg.net/2010/04/dreaded-access-denied-on-spd-workflows/

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