We have several websites and Virtual Directories under the websites both external facing and internal facing. We have begun developing in the .Net Framework 2.0. Our systems are all W2003 Server OS. Our internal applications that were developed on .Net Framework 1.1 are working fine. The .Net 2.0 Applications are producing the 401.2 Access Denied errors. Internal Applications are running on the same system whether it is .Net 1.1 or .Net 2.0. We are seeing this problem in one of our testing environments. I do not see it in our Production nor Virtual Environments. I have verified that all the settings are the same in each environment. We are using applicaton pools for the apps, using a domain asp service account and windows integrated authentication. In the problem environment, I had set the authentication in both the config file and IIS manager to disable the windows authentication and use anonymous. This worked for a while, but has quit working altogether now. Anyone have any suggestions?