network path not found iis server

We just cloned our iis server to a different host and cluster so that we can update the vmhost that it was on.  we also extended drive c:  on the vm cause it was running out of space.  When our users connect and run a batch from the web application (which connects to a database) they are getting the following " network path not found".  We can ping server by name and ip so we know thats not an issue and we can get to the folder / path that its saying  it cannot find.  We checked logs and are getting the following on the web server:

Event Type:      Warning
Event Source:      ASP.NET 2.0.50727.0
Event Category:      Web Event
Event ID:      1309
Date:            10/5/2011
Time:            11:45:33 AM
User:            N/A
Computer:      HMIS-WEB
Description:
Event code: 3005
Event message: An unhandled exception has occurred.
Event time: 10/5/2011 11:45:33 AM
Event time (UTC): 10/5/2011 3:45:33 PM
Event ID: e84d0a0ccf1f4f28babdddbc41a4eaf0
Event sequence: 1883
Event occurrence: 5
Event detail code: 0
 
Application information:
    Application domain: /LM/W3SVC/1/Root/HMISWEB-1-129622909134398350
    Trust level: Full
    Application Virtual Path: /HMISWEB
    Application Path: c:\inetpub\wwwroot\HMISWEB\
    Machine name: HMIS-WEB
 
Process information:
    Process ID: 3556
    Process name: w3wp.exe
    Account name: NT AUTHORITY\NETWORK SERVICE
 
Exception information:
    Exception type: IOException
    Exception message: The network path was not found.
 
 
Request information:
    Request URL: https://hmis-web.stonemor.com:443/HMISWEB/Utility/Export.aspx?sClearSession=1 
    Request path: /HMISWEB/Utility/Export.aspx
    User host address:
    User:
    Is authenticated: True
    Authentication Type: Forms
    Thread account name: NT AUTHORITY\NETWORK SERVICE
 
Thread information:
    Thread ID: 8
    Thread account name: NT AUTHORITY\NETWORK SERVICE
    Is impersonating: False
    Stack trace:    at HMISWEB.Export.btnOK_Click(Object sender, EventArgs e)
   at System.Web.UI.WebControls.Button.OnClick(EventArgs e)
   at System.Web.UI.WebControls.Button.RaisePostBackEvent(String eventArgument)
   at System.Web.UI.WebControls.Button.System.Web.UI.IPostBackEventHandler.RaisePostBackEvent(String eventArgument)
   at System.Web.UI.Page.RaisePostBackEvent(IPostBackEventHandler sourceControl, String eventArgument)
   at System.Web.UI.Page.RaisePostBackEvent(NameValueCollection postData)
   at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)