401.2 Error on IIS7

I was getting a 401.2 error on a website that I had moved to IIS7.  The website required Windows Authentication.  To resolve the issue:

• Make sure the website users have access to the underlying files.
• In the Application setup in the IIS console
• Go to Basic Settings for the Application (in the right pane), and click on ‘Connect As …’.  Selection ‘Application User’.
  
• Click the Authentication icon in the IIS section.
• Verify that ASP.NET Impersonation and Windows Authentication are both enabled.