HTTP Error 500.19 - web.config is invalid?

I am trying to deploy SharePoint web parts I developed in Visual Studio 2010 onto a SharePoint 2010 server. The problem is that when I go to the .svc file in IIS and browse it, I receive the error:

HTTP Error 500.19 - Internal Server Error

The requested page cannot be accessed because the related configuration data for the page is invalid.

and the details:

Module	IIS Web Core
Notification	BeginRequest
Handler	Not yet determined
Error Code	0x80070005
Config Error	Cannot read configuration file due to insufficient permissions
Config File	C:\Users\*******\Desktop\Final Solution\Analyze.WebParts\List\web.config

There's a link on the page that tells me that there's a malformed XML element in my web.config. But I don't see any:

asd

<?xml version="1.0"?>
<configuration>

  <system.web>
    <compilation debug="true" targetFramework="4.0" />
    <identity impersonate="true" userName="******\*******" password=*******>
  </system.web>
  <system.serviceModel>
    <behaviors>
      <serviceBehaviors>
        <behavior>
          <!-- To avoid disclosing metadata information, set the value below to false and remove the metadata endpoint above before deployment -->
          <serviceMetadata httpGetEnabled="true"/>
          <!-- To receive exception details in faults for debugging purposes, set the value below to true.  Set to false before deployment to avoid disclosing exception information -->
          <serviceDebug includeExceptionDetailInFaults="false"/>
        </behavior>
      </serviceBehaviors>
    </behaviors>
    <serviceHostingEnvironment multipleSiteBindingsEnabled="true"  aspNetCompatibilityEnabled="true"/>
  </system.serviceModel>
  <system.webServer>
    <modules runAllManagedModulesForAllRequests="true"/>
  </system.webServer>

</configuration>

I am unsure what is causing this. I set up an application pool in IIS for a similar project that has the exact same web.config (with a few minor name changes) and that works. Both are under Default Web Site (and need to). What should I do? where should I look?