Here's a quick IIS Setup list of steps for a new web site. Maybe that's why you got the error.
Something I always forget the steps, and the order is critical.
- Create your new local asp.net website
- From windows explorer make the website source directory and its sub directories Read Write by setting the properties.
- Copy these web site folders and files to the isp provider web folder.
- Open up the IIS wizard and create new site. Point to the web folder.
- For IP address and port settings (default and 80 for me) add multiple host header values (e.g. www.mywebsite.net mywebsite.net etc.) to match your DNS values.