I have a feeling something else is missing in IIS, here's a KB article on this issue in IIS6

http://support.microsoft.com/kb/315122

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Chris Hammond
Former DNN Corp Employee, MVP, Core Team Member, Trustee
Christoc.com Software Solutions DotNetNuke Module Development, Upgrades and consulting.
dnnCHAT.com a chat room for DotNetNuke discussions

Hi Sid,

Not sure if you have solved your problem. I have a site running under PLESK - not sure which version, but I have had no end of problems with permissions (so if anyone else has a solution please let ne know too).

One thing I note - with my version of Plesk the Plesk IIS WP user is the one that ASP.NET uses for the application - so this is the one that will need the access permissions as defined by the DNN setup. Otherwise you will not be able to create folders, save files etc with the DNN file manager. Set this under Web Directories - Permissions from the control panel.

That may not be the actual solution to your current problem - but it will probably cause you grief once you get up and running.

It seems that the Plesk standard is not to give that process higher level permissions and so I have problems from time to time with Plesk resetting the user permissions. My host advises that the Plesk folks have acknowledged this but do not have a fix.

There is probably a better way to set it up but I do not know.

Cheers
Gunno