Thank, Rod! I think that solved my network problem because it's working, now! :) <g>
Actually, after carefully stumbling and tripping around with security here's what we ended up doing:
Step 1: Add a new user with all the proper rights to run a website (we're still working out the details as to how much security restriction is really needed - in other words we're still fine tuning the user). We seem to believe that by adding the user to IIS_WPG Group seems to do the trick.
Step 2: Give the user created in Step 1 the proper right to the shared folder on the W2K Server
Step 3: Add new application pool running under the identity created in step 1
Step 4: Add the website needing to access to the share
Step 5: Cross your fingers, bite your nails, go down on one knee and pray that is works.
It worked for use so far - Like I said we're still fine tuning the security settings.
Thanks for all the help, Rod. Let me know if there is anything I can help you with some day.