Problems with .net v20 and web.config

One of our hosted clients had a .net v2.0 hosted application that simply refuses to run. The error message says that “access is denied” to the web.config file.

When i googled for possible solutions, most of it instructs us to add aspnet user and the web impersonation account to the list of users with valid read, read and execute, and list folder rights in the root folder of the application.

Even after doing this step, we still get the same error. Wonder what else can be done to solve this?