Permissions Problem when reinstalling or repairing Visual Studio 2003

I ran the "repair" on VS.NET 2003 on a Windows 2000 machine and afterwards got an error when I tried to open or create a web application.

Error Message:

The default Web access mode for this project is set to file share, but the project folder at 'http://localhost/appname' cannot be opened with the path 'd:\inetpub\wwwroot\appname'. The error returned was:
Unable to create Web project 'appname'. Unable to create the Web location 'd:\inetpub\wwwroot\appname'. Access is denied.

Solution:

The ASPNET user has permission to the d:\inetpub\wwwroot but the permission is not inherited.

Go to the folder in Win Explorer, right-click and select Properties then Security. Select the "ASP.NET Machine Account". At the bottom of the tab check "Allow inheritable permissions from parent to propagate to this object" and click OK.