After upgrading my server from .Net 1.0 to .Net 1.1 Sp1 I changed a few things to get the phile working again but the one thing i cant get working is the authentication. I have several errors that stop my users from being able to log in but this is the biggest:

On loading any page my web.config parser gives the error below.
If i take out the sessionstate section it works find but of course user sessions dont persist and no one can access password protected pages. Any thoughts? Ive googled all day to no avail. I am using VS 2003

Unrecognized configuration section 'sessionState'
...
Version Information: Microsoft .NET Framework Version:1.1.4322.2032; ASP.NET Version:1.1.4322.2032

My web.config is as follows:

<?xml version="1.0" encoding="utf-8" ?>
<configuration>

  <appSettings>
      <add key="NewsManager_SettingsFile" value="~/Config/NewsManager.Config" />
      <add key="MailingLists_SettingsFile" value="~/Config/Mailinglists.Config" />
      <add key="Polls_SettingsFile" value="~/Config/Polls.Config" />
      <add key="Forums_SettingsFile" value="~/Config/Forums.Config" />
      <add key="Accounts_SettingsFile" value="~/Config/Accounts.Config" />
      <add key="AdsManager_SettingsFile" value="~/Config/AdsManager.Config" />
      <add key="Supervisor_SettingsFile" value="~/Config/Supervisor.Config" />
      <add key="Pager_SettingsFile" value="~/Config/Pager.Config" />
      <add key="ContactUs_SettingsFile" value="~/Config/ContactUs.Config" />
      <add key="ErrorLogFile" value="~/ErrorLog.txt" />
  </appSettings>

  <system.web>

    <!-- DYNAMIC DEBUG COMPILATION
          Set compilation debug="true" to insert debugging symbols (.pdb information)
          into the compiled page. Because this creates a larger file that executes
          more slowly, you should set this value to true only when debugging and to
          false at all other times. For more information, refer to the documentation about
          debugging ASP.NET files.
    -->
    <compilation
        defaultLanguage="vb"
        debug="true" />

    <!-- CUSTOM ERROR MESSAGES
          Set customErrors mode="On" or "RemoteOnly" to enable custom error messages, "Off" to disable.
          Add <error> tags for each of the errors you want to handle.
    -->
    <customErrors
            mode="Off"
        />

    <!-- AUTHENTICATION
          This section sets the authentication policies of the application. Possible modes are "Windows",
          "Forms", "Passport" and "None"
    -->
    <authentication mode="Forms" >
        <forms
            name="ThePhile"
            path="/"
            loginUrl="/Project/WebModules/Accounts/Login.aspx"
            protection="All"
            timeout="30">
        </forms>
    </authentication>



    <!-- AUTHORIZATION
          This section sets the authorization policies of the application. You can allow or deny access
          to application resources by user or role. Wildcards: "*" mean everyone, "?" means anonymous
          (unauthenticated) users.
    -->
    <authorization>
        <allow users="*" />

            <!-- <allow users="[comma separated list of users]"
                             roles="[comma separated list of roles]"/>
                  <deny users="[comma separated list of users]"
                             roles="[comma separated list of roles]"/>
            -->
    </authorization>

    <!-- APPLICATION-LEVEL TRACE LOGGING
          Application-level tracing enables trace log output for every page within an application.
          Set trace enabled="true" to enable application trace logging. If pageOutput="true", the
          trace information will be displayed at the bottom of each page. Otherwise, you can view the
          application trace log by browsing the "trace.axd" page from your web application
          root.
    -->
    <trace
        enabled="false"
        requestLimit="10"
        pageOutput="false"
        traceMode="SortByTime"
        localOnly="true" />


    <!-- SESSION STATE SETTINGS
          By default ASP.NET uses cookies to identify which requests belong to a particular session.
          If cookies are not available, a session can be tracked by adding a session identifier to the URL.
          To disable cookies, set sessionState cookieless="true".
    -->
    <sessionState
            mode="InProc"
            stateConnectionString="tcpip=127.0.0.1:42424"
            sqlConnectionString="data source=127.0.0.1;user Id=sa;password="
            cookieless="false"
            timeout="20"
    />

    <!-- GLOBALIZATION
          This section sets the globalization settings of the application.
    -->
    <globalization
        requestEncoding="utf-8"
        responseEncoding="utf-8" />

  </system.web>

</configuration>

Solved:

Issues with the order you install VS.Net 2003 and .Net Framework. A simple reinstall in order VS.Net and SP1 fixed the problem