IIS Server - HTTP Error 401.3 - Unauthorized

I just installed IIS server for testing and I can't get it to work, it shows 40.3 Error.

HTTP Error 401.3 - Unauthorized You do not have permission to view this directory or page because of the access control list (ACL) configuration or encryption settings for this resource on the Web server.

Module              IIS Web Core
Notification        AuthenticateRequest
Handler             StaticFile
Error Code          0x80070005
Requested URL       http://localhost:8051/
Physical Path       C:\Users\Steve\Documents\ASP\1
Logon Method        Anonymous
Logon User          Anonymous

How can I fix this?

If its a development machine just give everyone read/write/execute privileges on that directory. That's pretty much dropping a nuke on the user privileges and def not something to do in a production environment. But has worked for me in the past on my development / testing boxes.