How to resolve HTTP Error 401.1 caused by group policies?

Here are the points of my scenario:
1. I have a Windows Server 2003 domain
2. I have a member web server (IIS) running Windows Server 2003 Standard, SP2
3. Linked to an OU, is a GPO with a total 99 (ninety-nine) group policy configurations in the "Security Options" and "User Rights Assignments" areas.
4. When I placed the IIS web server into the OU mentioned in point #3, the web application (Track-IT! Web Client) failed with the Internet Explorer error: HTTP Error 401.1 (see attached JPEG).
5. I placed the web server back into its original container, executed a "gpupdate /force" and answered "Y" to the prompt to reboot. BUT...
6. The error remained after the reboot.
QUESTION: How should I resolve this failure?
waforbes100Senior IT SpecialistAsked:
Who is Participating?
I wear a lot of hats...

"The solutions and answers provided on Experts Exchange have been extremely helpful to me over the last few years. I wear a lot of hats - Developer, Database Administrator, Help Desk, etc., so I know a lot of things but not a lot about one thing. Experts Exchange gives me answers from people who do know a lot about one thing, in a easy to use platform." -Todd S.

Make sure you get a full backup and a system state backup -- preferably with a VSS-aware backup software -- NTBACKUP is fine....

You could try:
and reapply the default Security Template -- which should wipe any resident GPO's back to installation.

Experts Exchange Solution brought to you by

Your issues matter to us.

Facing a tech roadblock? Get the help and guidance you need from experienced professionals who care. Ask your question anytime, anywhere, with no hassle.

Start your 7-day free trial
waforbes100Senior IT SpecialistAuthor Commented:
It turns out that the IUSR_COMPUTERNAME account was locked out! What policy could cause that?
There are two IUSR accounts.  One for the domain, and one for the local machine.  Maybe somehow you overwrote one with the other.
It's more than this solution.Get answers and train to solve all your tech problems - anytime, anywhere.Try it for free Edge Out The Competitionfor your dream job with proven skills and certifications.Get started today Stand Outas the employee with proven skills.Start learning today for free Move Your Career Forwardwith certification training in the latest technologies.Start your trial today
Microsoft IIS Web Server

From novice to tech pro — start learning today.