ntfs access denied problem

[axford]

Hello all,

Please help me with the following intranet security
problem:
I have set my IIS security to 'Windows Integrated' and
have NTFS security for the ASPNET account correct on all
web application folders. On one subfolder I want to
restrict access to administrators, managers and system. I
try this via NTFS.

In my web.config I have:
<authentication mode="Windows" />
<identity impersonate="true" />
<authorization><allow users="*" /></authorization>
<customErrors mode="Off"></customErrors>

When I restrict the NTFS security on the subfolder to the
above mentioned groups the access denied error ("Failed
to start monitoring file changes.") occurs with stack
trace (only the end):

System.Web.HttpContext.GetCompleteConfigRecord(String
reqpath, IHttpMapPath configmap) +434
System.Web.HttpContext.GetCompleteConfig() +49
System.Web.HttpContext.GetConfig(String name) +195
System.Web.CustomErrors.GetSettings(HttpContext context,
Boolean canThrow) +20
System.Web.HttpResponse.ReportRuntimeError(Exception e,
Boolean canThrow) +40

This seems to indicate an error while parsing the config
file. However when I add 'everyone:Read and Execute'
access to the specified subfolder everything works
perfect. So it must be a security problem. Of course I am
using an account that belongs to one of the above
mentioned groups!

Also strange is that access denied refers
to 'c:\inetpub\wwwroot\MyApp\SpecialSubfolder\web.config'
while the only web.config I know of
is 'c:\inetpub\wwwroot\MyApp\web.config'.

I read several KB articles, but none of them looks
related to the specific stack trace above.

Can anybody solve this issue?

thx.