Folks, I highly recommend you look into using App Pool Identities for web
sites and applications. No laughs please, as I know this advice comes a few
years late, but I haven't had time to experiment with them until the last
few weeks when I was forced to phase out the NETWORK SERVICE account
because it was interfering with my server's security.

See:
http://www.iis.net/learn/manage/configuring-security/application-pool-identities

For several years the easy way of getting an IIS app working was to give it
the NETWORK SERVICE account, but as the number of apps grow this creates
cross-cutting problems that finally drove me to phase it out.

The irritating thing is that the "virtual accounts" created for App Pools
don't appear in many dialogs for quick picking. I'm tired of typing "IIS
APPPOOL\My Great Pool" into the permissions dialog and clicking Check after
selecting local machine instead of domain.

I also found that debugging an app in VS2012 running under a virtual
account shows a really irritating popup warning about attaching the
debugger. I was hoping to fix this via adding something to a debugger group
or similar, but the only hackaround I can find was to adjust a registry
setting.

Despite the walls you have knock down as usual to get it working, the end
results are much neater and you can get rid of NETWORK SERVICE related ACLs
scattered around the place.

Greg K

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