Error installing DNN4 on Windows 8

My company supports a very old DNN4 site. I am attempting to get a local copy running on my Windows 8 computer so that I can test a set of changes requested by the client.

I have added the site to my Default web site in IIS, and have given the site it's own app pool:

When I try to browse to the site to actually install it, however, I get this error (which looks to be complaining about the handlers section of the web.config).

full error text

HTTP Error 500.19 - Internal Server Error
The requested page cannot be accessed because the related configuration data for the page is invalid.

Detailed Error Information:
Module     IIS Web Core
Notification       BeginRequest
Handler    Not yet determined
Error Code     0x80070021
Config Error       This configuration section cannot be used at this path. This happens when the section is locked at a parent level. Locking is either by default (overrideModeDefault="Deny"), or set explicitly by a location tag with overrideMode="Deny" or the legacy allowOverride="false".
Config File    \\?\C:\Users\Public\dnn4\web.config
Requested URL      http://localhost:80/dnn4
Physical Path      C:\Users\Public\dnn4
Logon Method       Not yet determined
Logon User     Not yet determined

Config Source:
   75:      </modules>
   76:      <handlers>
   77:          <add name="AJAX_ScriptResourceHandler" path="ScriptResource.axd" verb="GET,HEAD" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=1.0.61025.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35" preCondition="integratedMode,runtimeVersionv2.0" />

You really shouldn't setup the site under your USERS folder, I would recommend you do it outside of the Users folder in a folder that won't have restrictive permissions.