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I have setup a website in IIS 7.5 on a Windows 2008 machine. The website is sitting on C:/websites/

Then I added a virtual directory called "/uploads" that points to "d:/websites/uploads". This directory holds all the images/media.

When I browse the website in browser, I dont see any images etc. When I browse an image directly I notice that it's throwing a 401 error.

401 - Unauthorized: Access is denied due to invalid credentials.

I have searched Google quite a lot and I am pretty sure I am have all the permissions setup correctly.

Can anyone tell me what I could be doing wrong here?

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I have enabled IIS Detailed error display and I notice that it's trying to LOGON as Anonymous. I went ahead and added Anonymous to have 'Full Control' on that physical path. Still no go!!! –  Jimmy Dec 23 '10 at 12:07
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up vote 0 down vote accepted

Found a solution. http://www.anujgakhar.com/2010/12/23/iis-7-5-virtual-directory-error-401-unauthorized/ It was to do with Windows 2008 encrypting files that are zipped on a Mac.

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