BITS Configuration Problems

Hello,

I am having some problems getting BITS Uploads to work.

I am trying to configure 2 webservers running 2003. Servers are not in a
domain. WebServer A will have BITS directory locally, WebServer B will be
using the directory of WebServer A via a file share.

Here is the process of my configuration.

1. Bits configured and pointed to a local directory on Web A. Upload works
fine.
2. Account is created as "bitsguy", added to admin group on both servers.
3. Local directory is sharred out, and "bitsguy" given full control.
4. Bits configured and pointed to a local directory on Web B. Upload works
fine.
5. Virtual directory is reconfigured on Web B to point to remote share. I
can see the directory contents through IIS MMC, no failure messages in
Security Event Log on Server A.
6. Upload fails to Web B. ERROR CODE: 0x80070005 - Access is denied.
ERROR CONTEXT: 0x00000005 - The error occurred while the remote file
was being processed.

No failure messages show up Security Event Log on Server A, just a few
authentication success messages by "bitsguy" from server B.

Any ideas?