I found a fix. http://idunno.org/articles/277.aspx
even tho I am working in sql 2005, this seems to fit
incase that site goes down, here is the summary:
Configuring SQL2000 SP3
So, you have created the database, you've created the user, given it rights to all the stored procedures in the ASPState database, you've up to date with patches, Windows, IIS SQL, and you connect to your web site...
SELECT permission denied on object 'ASPStateTempApplications', database 'tempdb', owner 'dbo'.
INSERT permission denied on object 'ASPStateTempApplications', database 'tempdb', owner 'dbo'.
SELECT permission denied on object 'ASPStateTempApplications', database 'tempdb', owner 'dbo'.
SP3 for SQL 2000 adds a new security feature, disabled by default, cross-database ownership chaining (see KB 810474 for details). When this feature is disabled, ASP.Net session state stops working.
To reconfigure SQL 2000 SP3 for ASP.net session state you must run
use mastergoEXEC sp_configure 'Cross DB Ownership Chaining', '0';RECONFIGUREGO
Now restart your SQL server, then run
use master
go
EXEC sp_dboption 'ASPState', 'db chaining', 'true'
go