If a web-site needs to run under a specific identity, IIS application pools provide a convenient means of achieving this. However, a reoccurring problem I come up against in setting these up is forgetting to ensure the identity is also a member of the local
IIS_WPG group.
TechNet has the full story.

So if you get one of these red icons on your Application Pool, check the
IIS_WPG group.
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