This recipe is how to fix the error above on W2K8 R2 Server that runs legacy ASP pages.

You might see just one error in the Event Log that appears every time anyone tries to access ASP site:

The Template Persistent Cache initialization failed for Application Pool 'Your Site' because of the following error: Could not create a Disk Cache Sub-directory for the Application Pool

You can fixed that error in the Event Log by changing Default Identity for the site in question from “ApplicationPoolItentity” to “Network Service”, and giving user Network Service modify rights to folder C:inetpubtempASP Compiled Templates.

It is nice to have a clean Event Log.