IIS Permission Problem with SSRS 2005

I am having trouble getting SQL Reporting Services 2005 to work.

When I go to: http://localhost/reportserver

I get this . . .

Reporting Services Error

The report server has encountered a configuration error. See the report server log files for more information. (rsServerConfigurationError)
Access to the path 'C:\Program Files\Microsoft SQL Server\MSSQL.3\Reporting Services\ReportServer\RSReportServer.config' is denied.

I then went to, "Configure Report Services Configuration" and I see . . .

Web Service Identity
ASP .NET Service Account (blank)

I suspect it needs an ASP .NET Service Account, but I can't fill it in.

Clearly, this is an IIS issue. I am running Win2K SP4 with IIS 5.0. I can run ASP.NET pages that access ADO.NET databases, so something is working.

I'm not too sure where to look next.I suspect I should look in IIS directory security.

I ran the "Permissions Wizard" and now I'm a little closer,

The report server cannot open a connection to the report server database. A connection to the database is required for all requests and processing. (rsReportServerDatabaseUnavailable) Get Online Help

Login failed for user 'TEST-SERVER\ASPNET'.

What am I doing wrong