Hi Steve: Why are you assuming he has a remote configuration, i.e. IIS on ServerA attempting to configure a website on ServerB? I've seen a few posts with such an answer and they spin off into how to setup remote accounts to work with local accounts, etc.
Actually, I do not even see that he on a domain. It could be that he is on a "home" LAN, i.e. WORKGROUP, MSHOME, etc., so the last part of the error message is not relevant. I mention this because I am on such a setup using my own notebook running Vista x64, but am not able to configure a website, web application, or virtual site without encoutering the same security message.
With this being the case do you have any recommendations? I would certainly appreciate any feedback you may have. I am not sure if this is relevant but I have both v2.x and v3.5 of .NET installed, UAC enabled, Visual Studio 2005 & 2008 installed along with SQL 2005 & 2008, and finally SP1 for Vista x64 (which I have seen have caused others such security issues). I am observing the Event Log as well as using Process Monitor, and ... finally, have added the built-in Network Service account with full access, and IIS_USRS with "Read & Execute" and down permissions, since the default application pool's Managed Pipeline Mode is "Interactive" and the Process Model Indentity is "Integrated" (Pass thru authentication works for the DefaultAppPool ).
Thank you very much!