When you deploy a new Web Forms target, a temp directory is created in the Inetpub\wwwroot\application_name directory, where application_name is the name of your application, and several subdirectories are created in the Inetpub\wwwroot\application_name_root directory. Files are written to and deleted from these directories, therefore the IIS_IUSRS group must have full permissions on temp and application_name_root.
Before a PowerBuilder .NET Web Forms application connects to a SQL Anywhere® database, you must either start the database manually or grant the IIS_IUSRS group on IIS 7 default permissions for the Sybase\Shared and Sybase\SQL Anywhere directories, making sure to replace permissions of all child objects in those directories. Full permissions are required for the database and database log files used by your application.
If you do not grant the appropriate user permissions for Sybase directories and your database configuration is set to start the database automatically, your application will fail to connect to the database. SQL Anywhere cannot access files unless the IIS_IUSRS user group has the right to access them.
For more information, see the section on configuring ASP.NET in Deploying Applications and Components to .NET.