problem installing Web API V9

I attempted to install the V9 web api on our development instance and am getting the following error.  I have installed .Net 3.5 and .net 3.5sp1.  .net version 2 was already installed.

Server Error in '/TessituraAPI' Application.

Could not load file or assembly 'Tess.Diagnostics' or one of its dependencies. Access is denied.

Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

Exception Details: System.IO.FileLoadException: Could not load file or assembly 'Tess.Diagnostics' or one of its dependencies. Access is denied.

Source Error:

An unhandled exception was generated during the execution of the current web request. Information regarding the origin and location of the exception can be identified using the exception stack trace below.

Assembly Load Trace: The following information can be helpful to determine why the assembly 'Tess.Diagnostics' could not be loaded.

WRN: Assembly binding logging is turned OFF.
To enable assembly bind failure logging, set the registry value [HKLM\Software\Microsoft\Fusion!EnableLog] (DWORD) to 1.
Note: There is some performance penalty associated with assembly bind failure logging.
To turn this feature off, remove the registry value [HKLM\Software\Microsoft\Fusion!EnableLog].

Stack Trace:

[FileLoadException: Could not load file or assembly 'Tess.Diagnostics' or one of its dependencies. Access is denied.]
System.Reflection.Assembly._nLoad(AssemblyName fileName, String codeBase, Evidence assemblySecurity, Assembly locationHint, StackCrawlMark& stackMark, Boolean throwOnFileNotFound, Boolean forIntrospection) +0
System.Reflection.Assembly.nLoad(AssemblyName fileName, String codeBase, Evidence assemblySecurity, Assembly locationHint, StackCrawlMark& stackMark, Boolean throwOnFileNotFound, Boolean forIntrospection) +43
System.Reflection.Assembly.InternalLoad(AssemblyName assemblyRef, Evidence assemblySecurity, StackCrawlMark& stackMark, Boolean forIntrospection) +127
System.Reflection.Assembly.InternalLoad(String assemblyString, Evidence assemblySecurity, StackCrawlMark& stackMark, Boolean forIntrospection) +142
System.Reflection.Assembly.Load(String assemblyString) +28
System.Web.Configuration.CompilationSection.LoadAssemblyHelper(String assemblyName, Boolean starDirective) +46

[ConfigurationErrorsException: Could not load file or assembly 'Tess.Diagnostics' or one of its dependencies. Access is denied.]
System.Web.Configuration.CompilationSection.LoadAssemblyHelper(String assemblyName, Boolean starDirective) +613
System.Web.Configuration.CompilationSection.LoadAllAssembliesFromAppDomainBinDirectory() +203
System.Web.Configuration.CompilationSection.LoadAssembly(AssemblyInfo ai) +105
System.Web.Compilation.BuildManager.GetReferencedAssemblies(CompilationSection compConfig) +178
System.Web.Compilation.WebDirectoryBatchCompiler..ctor(VirtualDirectory vdir) +163
System.Web.Compilation.BuildManager.BatchCompileWebDirectoryInternal(VirtualDirectory vdir, Boolean ignoreErrors) +53
System.Web.Compilation.BuildManager.BatchCompileWebDirectory(VirtualDirectory vdir, VirtualPath virtualDir, Boolean ignoreErrors) +175
System.Web.Compilation.BuildManager.CompileWebFile(VirtualPath virtualPath) +83
System.Web.Compilation.BuildManager.GetVPathBuildResultInternal(VirtualPath virtualPath, Boolean noBuild, Boolean allowCrossApp, Boolean allowBuildInPrecompile) +261
System.Web.Compilation.BuildManager.GetVPathBuildResultWithNoAssert(HttpContext context, VirtualPath virtualPath, Boolean noBuild, Boolean allowCrossApp, Boolean allowBuildInPrecompile) +101
System.Web.Compilation.BuildManager.GetVPathBuildResult(HttpContext context, VirtualPath virtualPath, Boolean noBuild, Boolean allowCrossApp, Boolean allowBuildInPrecompile) +83
System.Web.Compilation.BuildManager.GetVPathBuildResult(HttpContext context, VirtualPath virtualPath) +10
System.Web.UI.WebServiceParser.GetCompiledType(String inputFile, HttpContext context) +43
System.Web.Services.Protocols.WebServiceHandlerFactory.GetHandler(HttpContext context, String verb, String url, String filePath) +180
System.Web.HttpApplication.MapHttpHandler(HttpContext context, String requestType, VirtualPath path, String pathTranslated, Boolean useAppConfig) +193
System.Web.MapHandlerExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute() +93
System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously) +155


Version Information: Microsoft .NET Framework Version:2.0.50727.3053; ASP.NET Version:2.0.50727.3053