The trace is configured to log to a table in any database (tested them all) on the same server. When the trace is run it appears to "prep" for the trace by creating the excel output grid format but it does not begin the trace. After several minutes a simple alert window pops up and says "failed to start new trace" No other error is generated.
This is the first time that sql profiler has been run on this server.
BTW, I can run trace to a file so it appears that this is tied to accessing the db to write to the table.
Addtionally the app currently runs all operations as "sa" (soon to be changed)