[sccm 2007] WebDAV Hell

[Gatt]

Trying to setup SCCM 2007 R2 on WIndows 2008 R2 server#

I have installed WebDAV on IIS 7.5 and configured it as needed for SCCM to function

 

However the SMS_MP_CONTROL_MANAGER keeps throwing errors about WebDAV not being properly configured! (Error 4970) then that it failed to install (Error 1016)

 

Not sure what else I can do...

 

WebDAV Auth rule created for All Users / All Content / Read

the True / True / False values have also been set correctly...

 

Anyone got any other ideas why SCCM would think webDav wouldn't be working