Exchange 2010, An IIS directory entry couldn’t be created. The error message is Access is denied.

When you receive the following error in Exchange 2010 when opening the Outlook Web App properties in the Exchange Management Console:

An IIS directory entry couldn’t be created. The error message is Access is denied.

Solution: Make sure that the group Exchange Trusted subsystem is member of local administrator group on all the Exchange 2007 servers.

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