Event 5402, SharePoint Foundation - SeSecurityPrivilege - Tracing Service failed

Installing a new instance of SharePoint 2010. We will be migrating some 2007 content database using the attach and upgrade method. For now we are just trying to get the box set up and running.

Using Powershell:
New-SPConfigurationDatabase -DatabaseName SharePoint_Config -DatabaseServer DBNAME\INSTANCE -AdministrationContentDatabaseName SharePoint_Admin_Content

I am running powershell as the service account which is installing the application. This account has been granted permissions on SQL (db_creator, security Admin)

Each time it runs I get flagged with this error:
Tracing Service failed to create the usage log file at ...\14\Logs. Error 0x0: The process does not possess the 'SeSecurityPrivilege' privilege which is required for this operation.

Clinton Cherry at Cherry Bytes put me on to the fix for my configuration:

In order to fix this you will need to do the following:
Go to > Local Security Policy- > Local Policies -> User Rights Assignment on the server you are trying to install on.
Assign your logged in account (eg [domain]/[username]) the following rights:

• Back up files and directories
• Debug Programs
• Manage auditing and Security log
• Restore files and directories
• Take ownership of files or other objects

What if your box locks down these policies.

The SeSecurityPriv is tied to the Manage auditing and Security Log policy.  This was granted to only the members of the local Auditors group.  I added our service account to the auditor's group and rebooted the box.  I then reran the New-SPConfigurationDatabase command and successfully created the Admin and AdminContent dbs.