Trying to set up anonymous login's on local intranet

I am trying to set up and FTP server using IIS. The purpose will be to server configuration files for Cisco aironet devices. I have the server set up to so anonymous logins but whenever I try I get a bad password error. I am trying login from another PC through IE and I'm getting nowhere. When I select login anonymously from the dialog box that appears, I am rejected and the box defaults back to the standard login. Any ideas?

I have the same problem trying to log in to ftp site on the same PC from the browser typing in URL

Keeps asking to log in, although I set up anonymous access and set IIS and NTFS permissions to read and browse..

What's especially interesting, local website is running at the same time without any issues..

After going through MS TechNet papers I came across the solution: I had made some changes to IUSR_<pc name> guest account which is better left alone.

Reinstalling FTP service with default settings solved the problem.