Hi,
Are You sure that LogFailures.xml.resources exists on the file system?

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www.apartmentssplit.net

Seems like there are issues with using the ApplicationPoolIdentity account for the AppPool Identity advanced setting (in conjunction with granting the DefaultAppPool user full access to the physical path).  Just so others who have this trouble understand all of what I stated in this post I'll go into detail.  I have the luxury of having access to a hypervisor (a physical box which servers virtual machines) whereby I can create virtual servers at will.  So to diagnose this problem I decided to create a fresh copy of Windows Server 2008 R2 inside a Virtual Machine for testing purposes.  The steps I took were: 1) install Windows Server 2008 R2 with required IIS/Application roles 2) run all MS updates 3) create physical folder for DNN instance under c:\inetpub in my case I created c:\inetpub\centreDnn 4) grant the DefaultAppPool user Full Control to c:\inetpub\centreDnn 5) create apCentreDnn application pool within IIS setting the Identity value to AppPool Identity 6) created the site within IIS directing the site to use the apCentreDnn app pool.  So from step 1 to step 6 were talking a server that's about 1 hour old - not too much can be wrong with it at this point.  7) visit website and got the same stinkin error.  Not sure Cathal understood exactly what I meant as I didn't clone anything this was an entirely new and clean install - however his suggestion to use the Network Service account did prove successful on this new install which leads me to believe that either some setting isn't documented when using the ApplicationPool Identity model or else the technology isn't where it needs to be and isn't stable enough to run the same from install to install.

At any rate I'm proceeding with my new DNN instance using the Network Service account instead of ApplicationPool Identity.

To whom it may concern. On Win XP 64bit, I have given both ASPNET and NETWORK SERVICE Full control. This got rid of LogFailures.xml.resources' while trying to install