Thanks for the responses.
I managed to get it fixed. that link you gave was a bit vague simply because I'm not familiar with Windows XP administrative tasks. My problem was I had simple file sharing enabled which prevented me from explicitly allowing access rights to the database.
Here's how to do it (explained as if you're two years old - just the way I like it)
1. In the folder where your files and database is kept (ie /BegASPFiles) click tools, folder options, view scroll down to the bottom of the list and uncheck use simple file sharing.
2. Right-click on the database file and choose properties click security, click add and type in the name of the internet guest account which is IUSR_machinename (replace machinename with the name of your computer).
3. Tick the allow full control box and click ok.
That should do it. If it still doesn't work, try moving the database file into the directory with the asp files (ie /BegASPFiles).