IIS7 cannot verify access to path

iis-7permissions

I've configured some sites on IIS pointing to E:\WebApps and subfolders. In basic settings when I click the Test Settings… button (connection as the application user) I get the error:

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.

I've checked that my IIS is running as NETWORK SERVICE so I've given read, read and execute and list folders contents access to not only E:\WebApps but also to E:. But I still get the error. This machine is not part of a domain. Any ideas what am I missing?

I've tried putting a web.config in E:\WebApps, and restarting IIS and the site in particular, but it made no difference.

Best Answer

I couldn't get the verification to work (anywhere else than in my workstation computer), but in the end I moved on and everything worked just fine, so maybe it wasn't that important.