A connection was successfully established with the server, but then an error occurred during the login process. (provider: Shared Memory Provider, error: 0 - The handle is invalid.)

The solution is simple, just reset IIS. If that doesn't work, this SO question will help

http://stackoverflow.com/questions/3270199/a-connection-was-successfully-established-with-the-server-but-then-an-error-occ