Strange error - Permissions and web.config?

I've added additional security to a sub folder in a web site where the user must provide a User ID and PWD to access a certain folder. It's not allowing anonymous access to the folder as designed.

Here is the folder: http://www.drpt.virginia.gov/ftp/blabaugh/

And the UID and PWD is both "labaugh-user".

Check out the error message once you log in. I've never seen that before. Any ideas? I searched this forum but didn't have any luck finding the solution.

"Server Error in '/' Application.
------------------------

Access denied to 'E:\websites\drpt2004\ftp\blabaugh\web.config'. Failed to start monitoring file changes. "

HUH?

Thanks!after googling a bit, it seems you should look at your authentication. Are you using impersonation? Does the ASPNET account have permissions to the directory you application resides in?

<a href='http://support.microsoft.com/default.aspx?kbid=317955'> KB Article 317955 </a>
Not doing any impersonation but that article helped. I added ASPNET account and it fixed it. Thanks!