Go to Start
in the search box, enter “Turn windows features on or off”
in the features window, Click-> “Internet Information Services”
Click-> “World Wide Web Services”
Click-> “Application Development Features”
Check all (enable) the features except CGI.
You need to assign permissions for IIS_IUSRS on the local machine.
Right click on the physical directory folder
Click-> ADD, and enter IIS_IUSRS (and make sure that under domain, the local computer is selected), and then you are good to go.