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I am migrating some ASP.Net applications from IIS6 to IIS7 and all has gone well until now. I am trying to create several virtual directories on 1 server that will point to files on another server. In IIS6, all I had to do was make anonymous authentication use a user that had access to the files. In IIS7, I can't get it to work. I setup the virtual directory with the username and password but I get a 500.19 error "Cannot read configuration file due to insufficient permissions". I can't imagine that I really have to put a web.config in a directory that just contains images and no application files. If I click on the directory in IIS Manager, I get that error about the web.config file on anything that I click on such as the Authentication section. Also, writing to files from the virtual directory seems to work just fine so I don't think there is anyway that I have an access problem. I have given the directory access to the IIS_IUSR group.

+1  A: 

Did you have a look at this video and this post

EDIT:

This and if that doesn't work try doing This

CheGueVerra
Yes. I saw that post but its not really the same problem I'm having. I have the website itself working and I have no problem with virtual directories if the they are on the same server as the website. The problem is when I try to make the virtual directory use a UNC.
Derek White
I tried adding Windows Authentication but that didn't work. I have found that when I view the security log in event viewer on the server that has the files, it has login requests for "Anonymous Logon". If I go to IIS and do Test Settings on the virtual directory then go to the security log on the other server, it shows login from the user that I setup correctly. I don't understand how to make IIS use the correct user. The application pool and the virtual directory are both set to connect as that user.
Derek White