I havn't touched this for a couple hours. I came back, refreshed the page, and now there is a new error.

System.InvalidOperationException
Failed to map path '/default.aspx'

Description: HTTP 500.Error processing request.

Details: Non-web exception. Exception origin (name of application or object): System.Web.

So just for fun I went playing with the permissions changing owners and giving everything 777 access, no effect.