IIS7 resource is not accessible in Remote system.

Dear Support,

      I am protecting one of the service which is running in the IIS7 , 2008 windows machine using basic authentication. when i am accessing this application in the same system, it is prompting for the credentials, after entering the proper credentials, I am getting access to the application.

      When i am accessing the same application from the remote system, if i enter correct credentials, once again it is asking for the credentials, and failing with "403 forbidden access is denied error"

you do not have permission to view directory or page using the credentials that you are supplied.

    In the policy server log files, It is displaying as authentication and authorization get succeeded.

  I tried by adding Network Service user with full control to project folder. and also in SiteMinder Configuration object i added IIS7 machine user credentials. Still i have the same problem.

Please help me to resolve this Issue.