Error for MOSS: App-Domain could not be created

I am trying to install MOSS on Windows Server 2003 (virtual machine).  I have SharePoint installed, but when I try to go to the website for the SharePoint site, I get this message:

     Server Application Unavailable
     The web application you are attempting to access on this web server is currently
     unavailable.  Please hit the "Refresh" button in your web browser to retry your request.

     Administrator Note: An error message detailing the cause of this specific request failure
     can be found in the application event log of the web server. Please review this log entry
     to discover what caused this error to occur.

The Application Event Log says:
     Failed to execute request because the App-Domain could not be created.
     Error: 0x80070005 Access is denied.  

I am completely out of my element here (normally program), but have to get this working.  I have searched other questions, and have tried the following, which resulted in the same error message pasted above:
     1.  Setting security for c:\inetpub\wwwroot so that IIS_WPG has full control
          (this folder keeps getting set to Read-Only, is that a problem?)
     2.  Going into .NET Framework 2.0 Configuration, right-clicking on Runtime Security Policy,
          and choosing "Reset All" to Reset All Policy Levels.
     3.  Restarting Internet Services on the server through IIS after completing the first 2 steps.

I can follow directions, I just need some Fisher-Price level directions, please.

Thanks!!
StacyThomasAsked:
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Robbie_LeggettConnect With a Mentor Commented:
When you gave the IIS_WPG full control of the wwwroot folder, did you propagate those permissions to everything underneath the folder?
 
:-)
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StacyThomasAuthor Commented:
That worked, Robbie!  Thanks!

I'm now getting an error that says:
    Cannot connect to the configuration database.

Should I accept this solution and then re-post that problem as a new question?

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Robbie_LeggettCommented:
Unfortunately that's the process. I'm happy to jump straight on it though.
 
:-)
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