I have nlb groups and multiple sites(each site has own application pool). I would like to have one account that all the app pools run under. I couldn't get kerberos working(necessary for remote file-share webroot) using the machine accounts but I was able to with a user account. Do I need to do this...

Hay, Whenever you get a password prompt then it may be a permission issue or IUSR issue. Following are few things you can try - As the file default.html present into C:\website\mywebsite make sure you give Read-Execute permissions to IUSR and application pool user to parent folder mywebsite and inherit...