Virtual Directory Throws 500 error when accessing xml files.

I created a virtual directory to access global files for multiple websites.

All files render properly except for xml files.

This works (without the VD)

http://www.recreatescottsdale.com/assets/xml/config_2986.xml

Note: recreate directs to:

C:\inetpub\wwwroot\LiveStoreFronts\stores\reCreate

This does NOT WORK:

http://www.recreatescottsdale.com/globalStoreAssets/reCreate/assets/xml/config_2986.xml

globalStoreAssets points to:

C:\inetpub\wwwroot\LiveStoreFronts\stores

I have given everr account permission to read & exec, list and read.

If I remove the web.config the xml files are readable but the site goes down.

Here is the web.config

<?xml version="1.0" encoding="UTF-8"?><configuration><system.webServer><handlers><add name="JWildCardHandler" path="*" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\8\jrun_iis6_wildcard.dll" resourceType="Unspecified" requireAccess="None" /><add name="hbmxmlHandler" path="*.hbmxml" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="cfswfHandler" path="*.cfswf" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="cfrHandler" path="*.cfr" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="cfcHandler" path="*.cfc" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="cfmlHandler" path="*.cfml" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="cfmHandler" path="*.cfm" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="jwsHandler" path="*.jws" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /><add name="jspHandler" path="*.jsp" verb="*" modules="IsapiModule" scriptProcessor="C:\ColdFusion9\runtime\lib\wsconfig\jrun_iis6.dll" resourceType="Either" responseBufferLimit="0" /></handlers><defaultDocument><files><add value="index.cfm" /></files></defaultDocument></system.webServer></configuration>

Any help would be appreciated