Ok, I have scoured online resources and applied all the suggested solutions.
I am setting up a simple website on Windows Server 2008 R2 under IIS 7.5 using the \"ASP
You might also get this if setting up FTP for a website and you try and change the default directory for FTP on the website.
From what I can tell:
Manage FTP Site -> Advanced Settings -> Physical Path
is the same
Manage Website -> Advanced Settings -> Physical Path
Changing one will change the other and possibly cause a 403 on a working site.