Not Authorized to access anything

Hi guys, I wonder if anyone could help because im going up the wall with this problem at the mo.

I just recently installed Xp pro and IIS 5.1 to be able to test simple asp pages locally. It worked initially for a while (about an hour) with a few very simple asp pages (like displaying time, day etc.) then decided to stop working and now it just gives me this error every time.

HTTP 401.1 - Unauthorized: Logon Failed

It wont even retrieve static files like images or text files. It doesnt even attempt to get the file, I know there is something up with permissions but I have been searching round the net for the past two hours trying things and they have all failed.

On the virtual directory I set up for the site, I have allowed anonymous access, execute permissions are set to scripts only, and settings are set to read and write.

Please if any one has any ideas id really appreciate it.

Did you change any permissions, or did you change anything in IIS configuration such as any of the authentication settings? And is that the exact error message? Login failed sounds more like the response you'd get after you attempt to login but give the wrong credentials.

The error message I am getting has now changed to

HTTP 401.3 - Access denied by ACL on resource.

My authentication settings are set to allow anonymous access and allow iis to control password, everything else under the directory security tab is not selected.

My app protection is set to medium pooled, I have a default doc. enabled. That's pretty much it for all my settings.

Also, im just changing the settings of the particular virtual directory, should I be changing the settings of everything i.e. properties of "web sites" in iis control panel?

It's strange there are certain other asp pages that work again now, but none are still working in the virtual directory I want!

I'd look at the file permission settings directly from windows. Typically IIS uses the IUSR_computername user account for non-authenticated web surfers, and impersonates authenticated users.