Have you moved MOSS SharePoint 2007 out of the C:\Inetpub\wwwroot\wss\ folder?
You need to not be transforming anything in the sharepoint IIS websites via IIS Manager, other than via the sharepoint Central Admin website. There are dependences in the sharepoint arrangement that are not simply saved in IIS, specifically around the customers that are looked for application swimming pools etc This internet site does a lot of things you require to do (i.e. host headers etc)
So ideal technique is to create a folder in the C: bkslshInetpubbkslshwwwrootbkslshwssbkslsh that is very easy to map to the internet application and afterwards leave the folder as is.
The only debates I've listened to for not running IIS internet sites out of the Inetpub directory site is that it is a generally recognized area for evil people to consider when striking a system, yet if protection is your problem you are much previous screwing the pooch if an opponent has documents system accessibility.