Here are the steps (Windows Server 2008, R2, IIS 7.5)
access helloworld.htm with no issues using fully qualified name http://server_name/virtual_folder/application/helloworld.htm
for the application, change Security->Authentication to require Windows Authentication and not allow anonymous authentication
Please help!
Thanks PV
Had the same issue, changing the ApplicationPool identity to NetworkService
solved it.
I found the solution here
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