How to resolve this issue:
> On Run type
inetmgr to open IIS.
> Select your website from the Sites panel
> For that site, click
Edit Permission link from right Action panel.
> Now a new property window will be opened.
> Select
Security Tab from the Property Window
> Select the user from
Group or user names
> Now click the Edit button for the selected User.
> If any of the listed deny checkboxes are checked then remove them
> as per your required permission level.
> This will difinitely resolve your problem.

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