ASP.NET app can't read a registry key

[Frustrated Newbe]

Hi,

Intro: WinXP Pro, MS.NET 2003 Enterprise Architect, IIS 5.1, logged user
belongs to Administrators group.

I'm trying to run a demo application (some ASP.NET web components). The
application throws a NullReferenceException at some point. I traced it and
found that aspnet_wp can't read the value (a directory path) from the
registry. RegMon confirmed that aspnet_wp looks at the right place. The key
does exist in the registry, everything is OK but the process can't read it,
the value returned is NOTFOUND. I did set the READ permission for the ASPNET
Machine Account for the required registry key node (actually I set it for the
HKCR - the parent node for the key in question), double-checked the
permissions on the actual key - all fine.
I read tons of stuff on the net, tried everything - aspnet_wp still can't
read the value.

Please, please! Someone should know the answer! S.O.S...
--
Thanks.