Need help configuring IIS to serve 2.0 web services

I am attempting to deploy an ASP.NET 2.0 Web service application on an IIS server that currently serves a large .NET 1.0 web application.

I have set up an appropriate virtual directory and have set the ASP.NET version for the virtual directory to 2.0, when I attempt to browse the site in a web-browser, I am prompted for a password. If I set the ASP.NET version down to 1.0, I am not prompted for a password, but obviously receive a full application error.

How can I configure IIS so that I can have the .NET 2.0 version selected without requiring the password prompt?

I have anonymous access enabled and have the "Authenticated Access" set to integrated windows authentication"

Any help or suggestions is appreciated...

Thanks.

From stackoverflow mmattax

• First of all, be sure that you are running two application pools, one for any .Net 1.1 web apps, and another for any .Net 2.0 web apps.

  From Tom Anderson

• Be sure to run

  c:\windows\microsoft.net\framework\v2.0.50727\aspnet_regiis.exe -i
  

  This will ensure that ASP.Net 2.0 is setup correctly with the IIS server.

  Secondly, be sure that the Temp ASP.Net folder has read/write permissions for the user that is accessing the site (IUSR_COMPUTERNAME or IIS_USER).

  C:\windows\microsoft.net\framework\v2.0.50727\Temporary ASP.NET Files\
  

  Hope that helps.

  From Tom Anderson