You need to select "Windows Integrated" authentication in IIS, and enable impersonation in your web.config:
<identity impersonate="true"/>
If you do not specify a name attribute, then ASP.NET will use the identity passed to it by IIS, which will be the network identity of the user.
You are correct that you must not give "full control" to IUSR_Machinename if you are counting on Windows Authentication to protect your files. Only the correct Windows users should have "full control".
http://msdn.microsoft.com/library/de...ersonation.asp
Eric