Virtual directories in IIS 7

We are setting up a new web server.  Win 2008 Server Web edition SP2 and IIS7.  When I set up the virtual directories to point to a folder in the domain on another server and use Network service account the web app can't find the files.  If I set it to a user with administrator privileges it sees the files fine.  I'm rather new to the whole web server thing so any help would be appreciated.  I need help giving permissions to these files via IIS virtual directories.

What is the best way to handle files that need to accessed via a web app.  There are way to many to store on the server and we need regular file access to these too.
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In IIS 7 (not IIS 7.5), sites access files and folders based on the account set on the application pool for the site. By default, in IIS7, this account is NETWORK SERVICE.

Specify an Identity for an Application Pool (IIS 7)

In IIS 7.5 (Windows 2008 R2 and Windows 7), the application pools run under the ApplicationPoolIdentity which is created when the application pool starts. If you want to set ACLS for this account, you need to choose APPPOOL\ApplicationPool instead of NT Authority\Network Service.

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Brad HoweDevOps ManagerCommented:
Phrontiste is correct,

Creat an application pool called "Network Share" or something descriptive, no managed code and set to run as a domain account with access to the UNC path.

Then convert the created virtual directory into an "Application" with the Appliation pool defined as the "Network Share" and the connect as defined as "Application user (Pass thru) ".

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