Which browser are you using? (IE, FF, Mozilla, Netscape, Etc.)
Can you go to other pages on your web server? (Try phpinfo.php in the install folder.)
Try with a different browser?

IE 6

All the web pages in parent directory work fine..

I realized I have to "config application" in IIS for this subfolder.. I did that.. now I get 403 error in browser on the install folder.. I gave read/write file permissions.. still doesnt work..

Ah, IIS, what fun.

403, what is that again? Permission denied?

Did you make sure that IUSR_MachineName and IWAM_MachineName have access to the physical directory? (Check it in Windows Explorer.)

a specific user account in directory security on the web site.. that user has full control rights in windows ..

Is there any documentation on specifically installing for IIS ?

Document for IIS? Nope. You're in a small crowd, using IIS with a PHP/MySQL product. b2evo is one of the only ones that i've encountered that doesn't require Apache. What OS are you using? If it's WinXP Pro, I might be able to help somewhat. If it's Win2k, 2kSBS, or any others, I'm kind of in the dark.

When you say "full access in windows", do you mean that you made them administrators?? If so, I sure hope that you are behind a firewall/router with port 80 blocked, or you're in a very insecure situation! (Crazy, if not stupid...)