Log on as the local administrator. Go to Start, Run, type in: services.msc, Verify that both ActivClient middleware and SmartCard services are stopped. (Windows 8 users hover your mouse in the lower right corner of your screen to get the Charms bar to show up. Click Search, type in "regedit.exe" then click it with your mouse.)
From the Search programs and files (Windows 8 and newer): type: Regedit
Navigate to "HKLM\Software\Microsoft\Cryptography" Right click on the Calais folder then choose "Permissions".
Verify "LOCAL SERVICE" exists, if it doesn't, click "ADD"
In the large white box type "LOCAL SERVICE" IF your computer is part of a domain, you will need to add your computer name\ before "LOCAL SERVICE"
Click Check Names, then OK.
Select Local Service -> Click Advanced (button) -> in the Permissions (tab) select LOCAL SERVICE -> and click Edit. (Windows 8.1 & 11 users will need to click "Show advanced permissions" to see these).
Mark the following with Allow:
Query Value
Set Value
Create Subkey
Enumerate Subkeys
Notify
Delete
Read Control
Click OK
Close all open windows
Open Services.msc again, Start smart Card Service, Start ActivClient middleware Service.
CAC Reader "should" now be showing in ActivClient.