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I just installed Windows Server 2008 R2 SP1 and configured IIS 7.5 to run PHP via CGI. I tried to get a test website working by creating d:\www\test\index.php, configuring IIS to to run a website from physical path d:\www\test and set the default document to index.php. I get the following error:

error: 404 - File or directory not found.

However, when I move index.php to c:\inetpub\wwwroot and point the physical location there it works okay.

What could the problem be?

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Sounds like a permission issue. Copy the permissions from inetpub onto the new folder and see if it is resolved.

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