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I've installed IIS on my Windows 7 to test ASP.NET websites, however it seems that it cannot host it since it has no access to the folder I am assigning it to. I've tried different folders but no luck, searched google for some help but cannot find anything.

Anyway, this is error message:

The server is configured to use pass-through authentication with a built-in account to access the specified physical path. However, IIS Manager cannot verify whether the built-in account has access. Make sure that the application pool identity has Read access to the physical path. If this server is joined to a domain, and the application pool identity is NetworkService or LocalSystem, verify that \$ has Read access to the physical path. Then test these settings again.

Here is screenshot, just in case: enter image description here

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Check this: – Massood Khaari Aug 2 '14 at 5:09

Check this out... it should help resolve your issue.

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tl;dr; - it's just a warning because it's not testing under the actual IIS user - try accessing the site and it should work. – Daniel Sokolowski Jun 19 '15 at 18:16

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