I hit this same exception on a new install, changing the App pool identity to NetworkService / aspnet fixed it.
Additionally, enabling Load User Profile on the app pool also worked.
Try the following:
App Pool -> Advanced Settings -> Load Users Profile = True
for me it was:
1. unblock all files
http://nicholasrogoff.wordpress.com/2010/09/01/how-to-bulk-unblock-files-in-windows-7-or-server-2008/
2.restart application pool
One cause for this problem is when you have done the totally odd thing of publishing you application on the server by using the server to download the application from the Internet. The files will then be marked as originating from the Internet, and security settings then prevent them from running.
The "downloaded-from-Internet" mark is stored in the file system as an NTFS alternative data stream. Use the "Streams" tool to display and remove the flags: http://technet.microsoft.com/en-us/sysinternals/bb897440.aspx
Then restart the application pool.
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