I can honestly say that I love Apache for its simplicity and just works attitude.  I am recently setting up my lab at home and using iis7 under windows 7 to test some sites.  Problem after problem, but I guess it is my lack of usage of iis.  Anyways, after setting up a new site and giving the folder permissions to the IIS user, I was still getting the following nasty error:

 

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The solution is definitely straightforward but after much googling and fiddling, finally something that works.  Go to the IIS admin and click on your site.  Once there, click on the Authentication icon:

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Once it opens, click on Anonymous Authentication and then on the right hand panel click on “EDIT”.  You will get a modal window about the user to use for anonymous security:

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Make sure you click on “Application Pool identity” instead of the default IUSR user.  That’s it, now the error is gone and a consistent user is used.

So I will attribute this to my lack of IIS skills, but still, quite convoluted.