Here is what worked for me.
- Set the app pool identity to an account that can be assigned
permissions to a folder.
- Ensure the source directory and all related files have been granted
read rights to the files to the account assigned to the app pool identity property
- In IIS, at the server root node, set anonymous user to inherit from
app pool identity. (This was the part I struggled with)
To set the server anonymous to inherit from the app pool identity do the following..
- Open IIS Manager (inetmgr)
- In the left-hand pane select the root node (server host name)
- In the middle pane open the 'Authentication' applet
- Highlight 'Anonymous Authentication'
- In the right-hand pane select 'Edit...' (a dialog box should open)
- select 'Application pool identity'