I think that might be a problem since that is owned by your windows login user account and is a special folder in windows.
I would try installing in a root level folder on your main drive and set permissions for the user that is the identity on the app pool and see if you get better results.
ie C:\testsites\mojoportal2394 would be a good palce to install the files, set the permissions, then go back to basic settings in IIS and browse to the new location and see how it goes.
Hope that helps,
Joe