CS0016: Could not write to output file...

[IKdev]

Hi all,
I have win2003 server and NET 1.1 framework. Created simple ASP .NET app
with one page that has button and a label. When trying to run got the CS0016
error (see below). My temp env. variables are fine and NETWORK SERVICE has
full access to ASP .NET temp folder.
Please help,
Thank you!
IK
Server Error in '/WebApplication1' Application.
--------------------------------------------------------------------------------

Compilation Error
Description: An error occurred during the compilation of a resource required
to service this request. Please review the following specific error details
and modify your source code appropriately.

Compiler Error Message: CS0016: Could not write to output file
'c:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\Temp orary ASP.NET
Files\webapplication1\0ce05c64\4984f2c7\en6eo2cp.d ll' -- 'The directory name
is invalid. '

Source Error:

[No relevant source lines]

Source File: Line: 0

Show Detailed Compiler Output:

c:\windows\system32\inetsrv>
"c:\windows\microsoft.net\framework\v1.1.4322\csc. exe" /t:library /utf8output
/R:"c:\windows\assembly\gac\system.drawing\1.0.5000 .0__b03f5f7f11d50a3a\system.drawing.dll"
/R:"c:\windows\assembly\gac\system.data\1.0.5000.0_ _b77a5c561934e089\system.data.dll"
/R:"c:\windows\assembly\gac\system.web.mobile\1.0.5 000.0__b03f5f7f11d50a3a\system.web.mobile.dll"
/R:"c:\windows\microsoft.net\framework\v1.1.4322\te mporary asp.net
files\webapplication1\0ce05c64\4984f2c7\assembly\d l2\25864670\c1712474_5032c601\webapplication1.dll"
/R:"c:\windows\assembly\gac\system.enterpriseservic es\1.0.5000.0__b03f5f7f11d50a3a\system.enterprises ervices.dll"
/R:"c:\windows\microsoft.net\framework\v1.1.4322\ms corlib.dll"
/R:"c:\windows\assembly\gac\system.xml\1.0.5000.0__ b77a5c561934e089\system.xml.dll"
/R:"c:\windows\assembly\gac\system.web.services\1.0 .5000.0__b03f5f7f11d50a3a\system.web.services.dll"
/R:"c:\windows\assembly\gac\system\1.0.5000.0__b77a 5c561934e089\system.dll"
/R:"c:\windows\assembly\gac\system.web\1.0.5000.0__ b03f5f7f11d50a3a\system.web.dll"
/out:"C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\ Temporary ASP.NET
Files\webapplication1\0ce05c64\4984f2c7\en6eo2cp.d ll" /D:DEBUG /debug+
/optimize- /warnaserror /w:1
"C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\Temp orary ASP.NET
Files\webapplication1\0ce05c64\4984f2c7\en6eo2cp.0 .cs"
Microsoft (R) Visual C# .NET Compiler version 7.10.6310.4
for Microsoft (R) .NET Framework version 1.1.4322
Copyright (C) Microsoft Corporation 2001-2002. All rights reserved.

error CS0016: Could not write to output file
'c:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\Temp orary ASP.NET
Files\webapplication1\0ce05c64\4984f2c7\en6eo2cp.d ll' -- 'The directory name
is invalid. '
Show Complete Compilation Source:
......