error accessing web app in IE and VS.NET

[Frustrated]

I was having several errors and decided to recreate the
web site and web application directories and now I can no
longer access it using IE or VS.NET.

The Error in IE is:

Server Error in '/Forms' Application.
-----------------------------------------------------------
---------------------

Access denied to 'C:\INETPUB\WWWROOT\FORMS' directory.
Failed to start monitoring directory changes.
Description: An unhandled exception occurred during the
execution of the current web request. Please review the
stack trace for more information about the error and where
it originated in the code.

Exception Details: System.Web.HttpException: Access denied
to 'C:\INETPUB\WWWROOT\FORMS' directory. Failed to start
monitoring directory changes.

Source Error:

An unhandled exception was generated during the execution
of the current web request. Information regarding the
origin and location of the exception can be identified
using the exception stack trace below.

Stack Trace:
[HttpException (0x80004005): Access denied
to 'C:\INETPUB\WWWROOT\FORMS' directory. Failed to start
monitoring directory changes.]
System.Web.NativeDirMonCompletion..ctor(String dir,
Boolean watchSubtree, Boolean renamesOnly,
NativeFileChangeNotification callback) +208

System.Web.FileChangesMonitor.StartMonitoringDirec toryRenam
esAndBinDirectory(String dir, FileChangeEventHandler
callback) +257
System.Web.HttpRuntime.FirstRequestInit(HttpContex t
context) +324

[HttpException (0x80004005): ASP.NET Initialization Error]
System.Web.HttpRuntime.FirstRequestInit(HttpContex t
context) +926
System.Web.HttpRuntime.ProcessRequestInternal
(HttpWorkerRequest wr) +128

The Error in VS.NET is:

The File path "C:\Inetpub\wwwroot\Forms" does not
correspond to the URL "http://localhost/Forms"