How do I setup authentication in IIS 7 using local accounts so that the 'users' group is not required? AM

We are trying to setup a directory on a website so that it uses Windows authentication through IIS 7.  We are trying to setup the directory so that only certain users have access to it.  Windows authentication has been enabled and we have changed the NTFS permissions, however unless the 'users' group is added nobody can gain access even if they are individually specified.  If the users group is not added we get an error 500 when accessing the folder on the website.  We want to set it up so that only specific users have access.  Does anybody know how to configure this using local users on the server?
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Make sure IUSR account has access to the directory.
tlcsupportAuthor Commented:

We have tried this but unfortunately it is still coming up with an error 500.  Is there anything else we can try?  For some reason it works when we add the users group.
what do the IIS logs say?  It will tell you what it directory/file or whatever is preventing access.

Assign the particular user permission on the requested folder and website main folder. IIS website require to impersonate the permission from parent level so assign user permission which this steps which will solve your problem.

>>Open IIS >> Right click on website >> permission >> add User >> Advanced >> Inherited the same >> Ok

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tlcsupportAuthor Commented:
I have not tested this but it sounds like it might work.  I have made a note for when I need to look at this type of problem again.
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Microsoft IIS Web Server

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