I am upgrading my site to IIS7, .NET 4.0 and Integrated Pipeline and am having some issues.

I have a sub application (virtual directory on a remote server) in my IIS install which contains static files, and I want it to be authenticated using WindowAuthentication where as the rest of my site will be using FormsAuthentication.

It has a web.config that looks like:

<?xml version="1.0" encoding="UTF-8"?>
<configuration>
<system.web>
    <authentication mode="Windows" />
    <authorization>
        <allow users="?" />
    </authorization>
</system.web>

I add the 2 authentication modules in the parent web.config and remove the default managedOnly precondition. Although, obviously because of the remove statement the directory is not under any authentication. However if I remove those lines, I get a generic server 500 error. Am I missing something else?