Access denied to 'D:\inetpub...'. Failed to start monitoring file

I moved an asp.net aplication from development environment to a
production server running 2003. whenever I try to access the
application from the local server itself I kept getting error "Access
denied to 'd:\inetpub\wwwroot\hds\'. Failed to start monitoring file
changes. " I've tried some relevant KB..saying i should add 'aspnet'
user to all directories folder security but still to getting the same
error...M STUCK!!

Any tips?

dungdang