I had the exact same problem, and I was not able to find anithing on the internet, so I tried different things and found the soulution.
Solution:
First make sure thar the BegASP and TestFolder Virtual Directory is not located in wwwroot folder, because I was not able to make it work when the TestFolder is located whitin the wwwroot folder.
Second, Go into the IIS Management Console, and open the properties window for both the BegASP and TestFolder Virtual Folder and make sure that Read and Write Permission is checked.
Other that that, the book should provide the rest.
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