Outbound URL Rewrite rule causes 500 server error on IIS7.0

iis-7outboundrulesrewrite

When I added User-friendly URL using IIS URL Rewrite Module 2.0 i got this server error 500.
I followed the guide on official MS learn iis page.

I noticed when I unchecked following option "Create corresponding outbound rewrite rule"

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everything works fine, but I need that option to be enabled.
With this option all I got is server error 500.
What am I doing wrong?
This article didn't help me.

Best Answer

Nice troubleshooting. Yes, compression clashes with outgoing URL Rewrite rules. Here's a link with instructions on how you can get the two working together: http://forums.iis.net/t/1165899.aspx.

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