JIT compilation failure with impersonation

[TBALKAN]

We have two machines. Machine1 is the web server and Machine2 is the 'file
server'. The goal is to read and write files from Machine2 using the
aspnet_wp.exe process which is running under ASPNET credentials on Machine1.
In order to do that we added the identity element into the web.config and
provided a domain-level account to use for impersonation. That account has
Modify permissions on the folder in which it is trying to read the file from
on Machine2. When the transaction is finished (which involves accessing the
remote resource on Machine2), and the user tries to open a web page that was
not previously JIT compiled, we get the following error:
Exception Type: System.Web.HttpException
Exception:
An unhandled exception occurred during compilation using the CodeDomProvider
'Microsoft.VisualBasic.VBCodeProvider'. Please review the stack trace for
more information about the error and where it originated in the code.
StackTrace:
at System.Web.UI.TemplateParser.GetParserCacheItemInternal(Boolean
fCreateIfNotFound) at System.Web.UI.TemplateParser.GetParserCacheItem() at
System.Web.UI.TemplateControlParser.CompileAndGetParserCacheItem(String
virtualPath, String inputFile, HttpContext context) at
System.Web.UI.TemplateControlParser.GetCompiledType(String virtualPath,
String inputFile, HttpContext context) at
System.Web.UI.UserControlParser.GetCompiledUserControlType(String
virtualPath, String inputFile, HttpContext context) at
System.Web.UI.TemplateControl.LoadControl(String virtualPath) at
E3Container.E3WebPartWindowUC.LoadWebPart(String strInitData, IE3Container
pE3Container)
TargetSite: System.Web.UI.TemplateParser.GetParserCacheItemInternal
Parameters:
- System.Boolean fCreateIfNotFound

::InnerException::
Exception Type: System.Web.HttpUnhandledException
Exception:
An unhandled exception occurred during compilation using the CodeDomProvider
'Microsoft.VisualBasic.VBCodeProvider'. Please review the stack trace for
more information about the error and where it originated in the code.
StackTrace:
at System.Web.Compilation.BaseCompiler.GetCompiledType() at
System.Web.UI.UserControlParser.CompileIntoType() at
System.Web.UI.TemplateParser.GetParserCacheItemThroughCompilation()
TargetSite: System.Web.Compilation.BaseCompiler.GetCompiledType

::InnerException::
Exception Type: System.Runtime.InteropServices.ExternalException
Exception:
Cannot execute a program. The command being executed was
"c:\winnt\microsoft.net\framework\v1.1.4322\vbc.exe"
@"C:\WINNT\Microsoft.NET\Framework\v1.1.4322\Temporary ASP.NET
Files\e3container\b879c699\68436b67\o-5s2ovn.cmdline".
StackTrace:
at System.CodeDom.Compiler.Executor.ExecWaitWithCaptureUnimpersonated(IntPtr
userToken, String cmd, String currentDir, TempFileCollection tempFiles,
String& outputName, String& errorName, String trueCmdLine) at
System.CodeDom.Compiler.Executor.ExecWaitWithCapture(IntPtr userToken, String
cmd, String currentDir, TempFileCollection tempFiles, String& outputName,
String& errorName, String trueCmdLine) at
System.CodeDom.Compiler.CodeCompiler.Compile(CompilerParameters options,
String compilerDirectory, String compilerExe, String arguments, String&
outputFile, Int32& nativeReturnValue, String trueArgs) at
System.CodeDom.Compiler.CodeCompiler.FromFileBatch(CompilerParameters
options, String[] fileNames) at
System.CodeDom.Compiler.CodeCompiler.FromDomBatch(CompilerParameters options,
CodeCompileUnit[] ea) at
System.CodeDom.Compiler.CodeCompiler.FromDom(CompilerParameters options,
CodeCompileUnit e) at
System.CodeDom.Compiler.CodeCompiler.System.CodeDom.Compiler.ICodeCompiler.CompileAssemblyFromDom(CompilerParameters
options, CodeCompileUnit e) at
System.Web.Compilation.BaseCompiler.GetCompiledType()
TargetSite:
System.CodeDom.Compiler.Executor.ExecWaitWithCaptureUnimpersonated
Parameters:
- System.IntPtr userToken
- System.String cmd
- System.String currentDir
- System.CodeDom.Compiler.TempFileCollection tempFiles
- System.String& outputName
- System.String& errorName
- System.String trueCmdLine

We have checked permission for all temp folders (Framework, Winnt, etc.)
where the JIT compilation might occur.

Thanks,
Tony