ASP.NET IIS WIndows 2008 Configuration Problem

I have just moved to a dedicated server and cannot get any of my applications to work.
I was initially getting the error;  

"It is an error to use a section registered as allowDefinition='MachineToApplication' beyond application level",

because of the line "<authentication mode="Forms">" in web.config.

I then went into IIS and used the "Convert to Application" command on the folder.

I now get a Error 500 Internal Server Error.

Looking through the Application log I see the following error:
Log Name:      Application
Source:        Microsoft-Windows-IIS-W3SVC-WP
Date:          23/05/2009 18:00:34
Event ID:      2268
Task Category: None
Level:         Error
Keywords:      Classic
User:          N/A
Computer:      MYSERVER
Could not load all ISAPI filters for site 'MYDOMAIN.COM'.  Therefore site startup aborted.
Event Xml:
<Event xmlns="">
    <Provider Name="Microsoft-Windows-IIS-W3SVC-WP" Guid="{xxxx-xxx-xxxx-xxxx-xxxxxxxxxxxxx}" EventSourceName="W3SVC-WP" />
    <EventID Qualifiers="49152">2268</EventID>
    <TimeCreated SystemTime="2009-05-23T17:38:34.000Z" />
    <Correlation />
    <Execution ProcessID="0" ThreadID="0" />
    <Security />
    <Data Name="SiteName">MYDOMAIN.COM</Data>

Is this a permissions issue or configuration, I'm lost? I'll provide further information if necessary.
Thanks in advance.
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Is your application written in ASP.Net 1, 2, or 3.5.  

I believe Windows Server 2008 automatically sets up with 3.5.  3.5 should probably run ASP.Net 2 okay, but ASP.Net version matching is one thing to check.

Suggestion:  Try setting up a new website using the IIS control panel.  Point it to one of your domain names that is already pointed to the new server.  Create a default.aspx page and see if it will run.  If it does, work your way up from what you know works to what you have in your existing site.  Some of the settings for some plug ins in the web.config file are different if you are running ASP.Net 3.5.  Simply using Forms Authentication should not cause a problem.

Also, check the permissions on the folder containing the files for the site.  After you've used IIS to create a new site, you could compare the permissions on the folder created for the new site to the permissions on your exisitng folders.

I just moved to a new dedicated server for some of my clients sites usng  I'm using Server 2008 and ASP.Net 3.5.  It's working well.

I don't know if any of this will help.  If you have any follow-up questions, I would be glad to share what I know.

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kirkheaton25Author Commented:
Thanks for your suggestions. I setup another default.aspx page and checked the version (it was 2) and immediately hit the same problem. I turned on  tracing failed requests, but nothing turned up in the logs. Eventually got the error "IIS7  Cannot read configuration file due to insufficient permissions". After researching this message, it turns out this problem was indeed a permissions one, as I needed  to grant read permission to IIS_IUSRS on the folders! I had a list of more than a dozen different error messages, now all fixed.
Many Thanks.
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