I installed new boxes at the beginning of the week. 1) Web Server on Win2008 x64, IIS 7 + all updates 2) DB Server on Win2008 x64, SQL 2008 Ent + all updates

I configured my websites, set up host headers and DNS entries, worked through some problems on my handlers and finally got it all running Wednesday morning. Our team has been using it since then. This morning I came in and everyone of us is getting a 500 error.

Error Summary
HTTP Error 500.19 - Internal Server Error
The requested page cannot be accessed because the related configuration data for the page is invalid.
Detailed Error Information
Module IIS Web Core
Notification Unknown
Handler Not yet determined
Error Code 0x80070005
Config Error Cannot read configuration file due to insufficient permissions
Config File \?\C:\RivWorks\dev\web.config

Requested URL http://dev.rivworks.com:80/login.aspx

Physical Path
Logon Method Not yet determined
Logon User Not yet determined
Config Source
-1:
0:
Links and More InformationThis error occurs when there is a problem reading the configuration file for the Web server or Web application. In some cases, the event logs may contain more information about what caused this error.

I’ve gone through the KB articles, made sure IIS_IUSRS had read permissions and am now stumped. What bothers me is IIS is looking in \?\C:\ instead of just C:. What is happening?

TIA