"Cannot verify access to path (C:\inetpub\wwwroot)", when adding a virtual directory

I am trying to set up IIS web services and ASP.NET services on Windows Server 2008 R2. The physical directory was created, but I cannot get it to work. This is a fresh IIS Role installation.

The server is on a domain, and domain\server$ has read/write/browse access to C:\inetpub\wwwroot. Read/write/browse access is also granted to:

• Administrators
• Network Services
• Users
• IIS_IUSRS
• IUSR

What I have tried so far

• In the Edit Virtual Directory -> Connect As dialog, select Application User (pass through authentication). When I press Test Settings, I get the above error.

• In the Edit Virtual Directory -> Connect As dialog, select Specific user: IUSR (no password). When I press Test Settings, I get the following:

Other Notes

Anonymous Authentication is Enabled, and Anonymous user identity is Application pool identity.

The Application pool configuration looks like this:

In the web browser, http://localhost returns an blank page but no error.

Any help would be appreciated.

I was having the same issue till just now; just as you mentioned, I tried "Connect As" and the username and password that I wrote down, was my machine's user (IIS is running on this machine), I tested the connection and it works now. Maybe if you weren't using that machine's user (try user with administrator privileges), you should give it a try, it worked for me, it may work in your case as well.