By looking at this thread's title, I supose you don't have NTFS.
For a non NTFS system, you should open your iis manager (control panel > administrative tools), and on the default web site, right click and choose New > Virtual Directory. Then follow the wizard to point to your project folder.
If this does not solve your problem, you should say the rest of your error message. The Web Access Failed Dialog Box can appear for a lot of reasons.
NetAngel