IIS 7 – The process cannot access the file because it is being used by another process – 0x80070020

Turns out Skype was using port 80. Quitting Skype fixed the problem. Used this command to find out what was using port 80
netstat -aon | find “:80”
Then used Task manager to find out what that process was. More on this here: http://support.microsoft.com/kb/973094

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