I get this error whenever I try to change a website project to use IIS Express: ( http://i.imgur.com/tzRwkaE.png )
An error occurred trying to create the site . Filename: \\?\C:\Users\kb\Documents\IISExpress\config\applicationHost.config
Error: Cannot write configuration file
Neither C:\Users\kb\Documents\IISExpress\ nor its subfolders are in use or readonly or encrypted, and I have even tried to give Everyone Full access to the directory.
By using process monitor the real error seems to be that CreateFileTransacted fails due to NtCreateFile returning STATUS_TRANSACTIONMANAGER_NOT_ONLINE (0xC0190052).
Process Monitor event listing: http://i.imgur.com/ntF8DHC.png
Event info: http://i.imgur.com/KWFpIvv.png
Event stack trace: http://i.imgur.com/45X6XRP.png