There were a number of problems with the Transition to IIS 7. Considerable debugging was required.
FIRST ISSUE RESOLVED:
Directory permissions for the IIS 7 application pool identity (the default was Network Service)
needed to be added so that the IIS application pool could have access to the physical path of the Website directory.
SECOND ISSUSE RESOLVED:
A line needed to be added to the ASP.Net application web.config file.
Child of <configuration>
After <system.web>
Added:
<system.webServer>
<validation validateIntegratedModeConfiguration=”false” />
</system.webServer>
