Try this To resolve your Logon failure issue , try the following steps : 1. Go to Control Panel -> Administrative Tools -> Internet Information Services 2. Next, select Local comupter "Web Site" -> "Default Web Site" 3. Then click on the directory containing your site or if you are in the rool, click the folder with the "right Default Web Site". 4. Then under the "directory security" tab click the "Edit" under "anonymous access and authentication control". 5. Uncheck "Integrated Windows authentication" and then check "anonymous access " on top. Be sure to check "Allow the ISS .... control" Now you go and try new website. It should work. or have a look at this link http://support.microsoft.com/kb/896861[^] http://forums.iis.net/t/1155585.aspx[^] http://forums.techarena.in/networking-security/1267593.htm[^]