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IIS 7 Basic Auth keeps asking for password

I am trying to set up Basic Authentication for an IIS 7 ASP.NET web site running on Server 2008 R2

I have enabled Basic Authentication in IIS and disabled Anonymous authentication
I have created a 'local' user account on the server and given it full access to the sites folder but whenever I try to access the site it just keeps prompting for the username and password

What am I missing?
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Emmanuel Adebayo
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I think I'm missing the last bit, adding the user to the IUSR group, I'll give that try tomorrow

thanks
Of course, you Enabled Basic authentication, therefore IIS has an expectation that a user hitting the website will enter valid user credentials.

1.  What is this for an application?
2.  What are you trying to accomplish by enabling basic auth?
2.  What does the site do?

BTW, adding a user to the IIS group doesn't buy much in way of functionality or access unless that group is used for controlling NTFS permissions and anything in the application that has permissions assigned to it.

Dan
Any additional info?

Dan
Adding to the IUSR group worked