As we know there are many steps need top be followed to setup the K2.Net 2003. Each step it has its own importance.If we miss any step in configuration we get a specific error for that. Recently we have tried to move the SharePoint List to a new site collection and updated this URL in string table and submit the workflow. So while creating a new list item the workflow got into error state and the error reads like below (below image). We have given Full Permissions on the site and the list, but none of these things worked. Finally after doing this and that I have found that the service account is not listed under site collection administrators. So I have added the account there and tried to repair and it worked so fine. Thought this will help others. So shared here!
So just you know, the steps required for adding the permissions under site collection:
1. Go to Site Actions
2. Select Modify Site Settings
3. Go to site collection Administration
4. Select Top level Settings (if you see this link under that)
5. Next page, under Users and Permissions section click Site collection administrator
6. The next page will show you the Editor showing people picker (check names image and browse)
7. Add the service account into that.
Hope it helps!!!