ASP.NET 2.0 Web application on Windows 7 not running

See more:

C#2.0

C#

Dear Friends,

I am trying to run an ASP.NET 2.0 web application in Windows 7 with IIS 7.5
exact version (IIS Version 7.5.7600.16385).

My ASP.NET 1.1 and Classic asp sites are working fine, but when i configure any ASP.NET 2.0 application i get only a blank page when i browse it.

url:http://localhost:108

Event log shows the following error Event ID 2299 and 1334

Event ID 2299
An application has reported as being unhealthy. The worker process will now request a recycle. Reason given: ASP.NET application initialization failed.. The data is the error.

Event ID 1334
An error occurred while trying to start an integrated application instance.

Exception: System.SystemException<br />
<br />
Message: Failed to create AppDomain.<br />
<br />
StackTrace:    at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironment(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)<br />
   at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironmentAndReportErrors(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)<br />
   at System.Web.Hosting.ApplicationManager.GetAppDomainWithHostingEnvironment(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)<br />
   at System.Web.Hosting.ApplicationManager.CreateObjectInternal(String appId, Type type, IApplicationHost appHost, Boolean failIfExists, HostingEnvironmentParameters hostingParameters)<br />
   at System.Web.Hosting.ProcessHost.StartApplication(String appId, String appPath, Object& runtimeInterface)<br />
<br />
InnerException: System.ArgumentException<br />
<br />
Message: The UNC path should be of the form \\server\share.<br />
<br />
StackTrace:    at System.Security.Policy.PolicyLevel.GenericResolve(Evidence evidence, Boolean& allConst)<br />
   at System.Security.Policy.PolicyLevel.Resolve(Evidence evidence, Int32 count, Char[] serializedEvidence)<br />
   at System.Security.PolicyManager.CodeGroupResolve(Evidence evidence, Boolean systemPolicy)<br />
   at System.Security.PolicyManager.ResolveHelper(Evidence evidence)<br />
   at System.Security.HostSecurityManager.ResolvePolicy(Evidence evidence)<br />
   at System.Security.PolicyManager.Resolve(Evidence evidence)<br />
   at System.Security.SecurityManager.ResolvePolicy(Evidence evidence, PermissionSet reqdPset, PermissionSet optPset, PermissionSet denyPset, PermissionSet& denied, Boolean checkExecutionPermission)<br />
   at System.Security.SecurityManager.ResolvePolicy(Evidence evidence, PermissionSet reqdPset, PermissionSet optPset, PermissionSet denyPset, PermissionSet& denied, Int32& securitySpecialFlags, Boolean checkExecutionPermission)<br />
   at System.AppDomain.nSetupDomainSecurity(Evidence appDomainEvidence, IntPtr creatorsSecurityDescriptor, Boolean publishAppDomain)<br />
   at System.AppDomain.SetDomainManager(Evidence providedSecurityInfo, Evidence creatorsSecurityInfo, IntPtr parentSecurityDescriptor, Boolean publishAppDomain)<br />
   at System.AppDomain.InternalRemotelySetupRemoteDomainHelper(Object[] args)<br />
   at System.Threading.Thread.CompleteCrossContextCallback(InternalCrossContextDelegate ftnToCall, Object[] args)<br />
   at System.AppDomain.nCreateDomain(String friendlyName, AppDomainSetup setup, Evidence providedSecurityInfo, Evidence creatorsSecurityInfo, IntPtr parentSecurityDescriptor)<br />
   at System.AppDomain.CreateDomain(String friendlyName, Evidence securityInfo, AppDomainSetup info)<br />
   at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironment(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)<br />

Thanks in Advance.