Could not create a Disk Cache Sub-directory for the Application Pool

Error: The Template Persistent Cache initialization failed for Application Pool ‘DefaultAppPool’ because of the following error: Could not create a Disk Cache Sub-directory for the Application Pool. The data may have additional error codes..

If you happen to see this error pop up on your Windows Server 2003 system here’s how to fix it.

Basically, the problem is there are two user groups (IIS_WPG and NETWORK SERVICE) that don’t have permissions set on the following three folders:
%systemroot%\Help\IISHelp\Common
%systemroot%\System32\Inetsrv\ASP Compiled Templates
%systemroot%\IIS Temporary Compressed Files

%systemroot% is usually C:\windows or C:\winnt by the way!

For “%systemroot%\Help\IISHelp\Common ” give both groups; Read and Execute, List Folder Contents, and Read permissions.

For “%systemroot%\System32\Inetsrv\ASP Compiled Templates” and “%systemroot%\IIS Temporary Compressed Files” give both groups full control.

then after that you’ll have to restart IIS.

1. Click Start, click Run, type Services.msc, and then click OK.
   
2. Right-click IIS Admin, and then click Restart.

That should fix that silly problem!