The application server must have a data folder (example, ManualImport) which the software uses to upload the imported XML file. The folder must have full permissions to IUSER and IIS_USERS (<ApplicationServerName>).
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Open the application server.
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Create a folder with a desired name.
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Right-click the folder, click Properties, and then click the Security tab.
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From Group or user names, select IUSR, click Edit, and then select Full Control.
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Similarly, provide full control access to IIS_IUSRS<ApplicatoinServerName>.
