Your questions may be better answered in an ASP/ASP.NET newsgroup.
I've listed an article that may be helpful in recreating the ASPNET
account. I've also listed several articles about running ASP.NET
applications.
827641 BUG: "Server Application Unavailable" Error Message from ASP.NET
After
http://support.microsoft.com/?id=827641
817033 PRB: "Access denied" Error Message When You Run an ASP.NET 1.0
http://support.microsoft.com/?id=817033
815171 HOW TO: Configure an ASP.NET Application to Use the Same Credentials
as
http://support.microsoft.com/?id=815171
815153 HOW TO: Configure NTFS File Permissions for Security of ASP.NET
http://support.microsoft.com/?id=815153
Thank you for choosing Microsoft
Miriam Green
Microsoft Developer Support
This posting is provided “AS IS” with no warranties, and confers no rights.
You assume all risk for your use. © 2002 Microsoft Corporation. All rights
reserved.
“Microsoft Security Announcement: Have you installed the patch for
Microsoft Security Bulletin MS03-026? If not Microsoft strongly advises
you to review the information at the following link regarding Microsoft
Security Bulletin MS03-026
http://www.microsoft.com/security/security_bulletins/ms03-026.asp and/or to
visit Windows Update at
http://windowsupdate.microsoft.com to install the
patch. Running the SCAN program from the Windows Update site will help to
insure you are current with all security patches, not just MS03-026.”