Forms auth iis 8.0 - Error message 401.2.: Unauthorized: Logon failed due to server configuration.

I set my web application up to use forms authentication. My root web.config file has the very basic settings: <authentication mode="Forms"> <forms loginUrl="~/Security/Login.aspx" /> </authentication> <authorization> <deny users="?" /> </authorization> No page should be accessible besides ~/Security/Login.aspx. As soon as I run the debugger in vs2013 it tries to go there but I get the 401.2 error. All of my project settings are correct. Anonymous Auth is enabled. The only way I can get this to work is to add an additional web.config file to my Security folder that allows * users. Does this make sense though? Isn't the point of the loginUrl property in my root web.config to automatically redirect to the URL and I would assume give all access to this page. Amy ideas / suggestions? If putting a web.config in my Security folder is actually the correct solution are there ...