Windows 7 IIS problem

Fixed it!

mrdenny thanks for pointing the log out. With that I was able to search on google in a more specific way. My problem was this:

"The worker process for application pool 'DefaultAppPool' encountered an error 'Cannot read configuration file due to insufficient permissions ' trying to read global module configuration data from file '\?\C:\Windows\Microsoft.NET\Framework64\v2.0.50727\config\machine.config', line number '0'. Worker process startup aborted."

Solution:

To fix this issue, give the IIS_IUSRS account explicit read rights on the 'C:\Windows\Microsoft.NET\Framework64\v2.0.50727\config\machine.config' file, do a iisreset and you should be fine.

Source

I was having the same problem and the previous answer did not solve.

This following solved it:
Give permission to C:\Windows\System32\inetsrv\config folder to Network Service user.