Multiste on Windows/IIS — 404s

I’ve just installed a fresh Multisite WordPress installation on to Windows Server 2008 R2 Enterprise. This is a test box and I’m using localhost as my root domain. I’m using subdirectories, which is what I’ll use in production. WordPress 3.1 is installed to the root (c:\inetpub\wwwroot) without it’s own directory.

I am able to create sites (created one called ‘test’) but the themes I apply do not render. When viewing source and look at an element, say the header image on twentyten, I see the path as:

http://localhost/test/wp-content/themes/twentyten/images/headers/path.jpg

When I put that into a browser I get a 404 error.

The detailed error information is:

Module IIS Web Core
Notification MapRequestHandler
Handler StaticFile
Error Code 0x80070002
Requested URL http://localhost:80/content
Physical Path C:\inetpub\wwwroot\content
Logon Method Anonymous
Logon User Anonymous

There is no ‘content directory under wwwroot so I’m at a bit of a loss as to why it is rendering like that. There is also no ‘teset’ directory being made under the root.

I gave IUSR write permissions on the wwwroot directory.

Any ideas on what needs to be done to resolve this issue?

Thank you!
Rich