Symptoms
Can't open Designer in SharePoint and Can't Activate K2 Features for 2010 site.
Diagnoses
None
Resolution
We granted the Sharepoint Farm Account dbo rigts to the K2 database. We remoted into the Central Adminstration server and ran the Activate All K2 Features from there. We selected the Central app pool as the deployment app pool. After performing these steps, we were able to successfully activate the K2 Features in the site.
The K2 Features activation needs to execute in the server where Central Admin is hosted.