.NET app with CR Viewer getting 401 unauthorized on toolbar resources

I just migrated my .NET MVC 3.5 sp1 app to a VPS running 2008x64 and IIS7. My app uses a Crystal Report Viewer to dynamically display reports. I was able to get the reports to display properly after installing the CR runtime CRRedist2008_x64.exe. From past experience I also copied the aspnet_client folder to the root of my app on the server. When I try to display a report in my app I am prompted for a userid and password in a dialog titled 'Authorization Required'. I click cancel and the report displays with the exception of the toolbar buttons where it simply says 'Submit Query' instead. I can see in Fiddler that I'm getting 401 unauthorized errors trying to get the tool bar resources. On sugge开发者_运维知识库stion of one of the forums I tried converting asp_net folder to an Appication in IIS7. Then I disabled authentication on the aspnet_client application in IIS7. Still no luck. Please help. Thanks.

Turns out it was a permissions setting on the folder.