Do this:
- In Windows Server 2008, go to Server Manager > Storage > Disk Management
- Right click on Disk Management > Create VHD
- Select the location as being on your network share (click browse)
- Create a fixed size VHD. I would personally make the VHD twice the size of your current dataset if that is possible. It really depends on what you are hosting.
- Initalize the disk by right clicking on the new VHD in disk manager and select Initalize Disk.
- Format the new volume in Disk Management.
- Now, copy your website over to the new virtual hard drive you formatted.
- Configure IIS to host your webpage from the location on your VHD.
This gets around the file permission issues you are running into because to the web server, you are hosting from a local hard drive instead of via a network share.
The only issue I could see running into is if you needed to access the data on the site being hosted by IIS in Linux. You can access it over the web, but I do not know of any linux tool you can use to mount a VHD (although one very well could exist!)
I just tried this btw and it worked! Keep in mind the host of the share in my case was not a linux machine but a windows machine - but still the VHD I created was on a network share on another machine.