The Local rights are needed for system database restore because the sqlserver is brought down in single user mode. They are also needed for VSS restores of the system database because the sqlserver will be stopped and then restarted after the restore. And they are needed to see if VSS services are enabled. SQL rights are needed to connect to a SQL instance.
Required Capability: See Capabilities and Required Actions
To add a SQL Server instance to the iDataAgent
This task is now complete.