This is what I did to get it to work:
Using the dialog
[Control Panel -> Administrative Tools -> Internet Services Manager -> right click
on Default Web Site -> Directory Security],
click to Edit... anonymous access and authentication control,
uncheck 'Integrated Windows authentication' (only 'Anonymous access' should be checked.
Also click to Edit... 'Account used for
anonymous access', make sure the Username is IUSR_MACHINENAME where you replace
MACHINENAME with the name of your computer.
Also uncheck 'Allow IIS to control password).
Good luck!