Wordpress issues on IIS7 (Windows Server 2008 64-bit)

Hey guys,

I think this will be an easy one for the Experts around here but as I am no expert on IIS or Wordpress, these small issues are really driving me nuts. So here is what I have:
- Windows Server 2008 Web Edition box, 64-bit with IIS7.
- Wordpress 2.7.1 (yes I know I should upgrade this).
- MySQL database running locally on this Server 2008 box.

This setup is up and running and working. By that I mean I can logon to the Wordpress site, publish posts, manage comments, the whole nine yards. BUT to get to that point, I do remember having to do all kinds of different things on IIS7 to get it working. Permissions, etc.
The problem now is simple. If I try to update it, I get the famous 500 error. When trying to upload images, etc to a post I get a permissions error.
The issue is IIS7 is way different from IIS6. If this was an IIS6 box it would be working perfectly I am sure. On IIS7 I do not know exactly where to look for things, how to set permissions etc. Add to that what Wordpress needs/is trying to do during an upgrade and you get the whole picture.
So how to make Wordpress play nicely with IIS7? Again what I am trying to achieve:
- Upgrade Wordpress to the latest version. Fails with a 500 error on the webpage.
- Make sure posts can have images, videos, etc. Fails with some sort of permissions error.

Any ideas? :-)

Thanks!

Cláudio Rodrigues
Citrix CTP