Can a windows service running with network service or local system account, updated active directory container?

I have two windows services (one running as network service and the other as local system) – because of some architecture reasons these cannot run under domain user account.

And there will be a store in Active Directory (container) to which entries will be added/removed and also read from it.

However whenever I tried to add/remove entries the operations are failing (programmatically in .net – please see for more details: https://stackoverflow.com/questions/20943436/service-running-as-network-service-local-system-failed-to-add-entries-to-active )

My understanding is when a service runs under local system/network service account computer identify (domaincomputer$) will be passed – so as long as the computer account has full access on the container I should be able to perform add/remove. For some reason its complaining about permissions.

Any thoughts/suggestions/options I can try?

regards.