Hi,
Going to http:\\WSERVER\VIRTUAL directly in your browser is not the same thing as accessing the virtual folder from WexLite. The difference is the context of the executing user.
In the first case, you are accessing to the remote share in the context of the user that you provided while creating the virtual folder in IIS manager (it can be changed with "Connect As" button).
In the second case, IIS executes WexLite in the context of anonymous user (by default IUSR_Machinename) so you are accessing to the remote share in the context of the user IUSR_Machinename and if this user doesn't have enough permissions on the remote share, WexLite will fail.
So what you need to do are firstly making the other computer (where the shared folder is located) recognize this anonymous user and secondly grant "Modify/Change" permission on the shared folder.
You can accomplish the first part in one of two ways:
1. Configure the anonymous account as a domain account.
This permits anonymous requests from potential access to resources across the network. To prevent all anonymous requests from having network access, you must only make the anonymous account a domain account on the virtual directories that specifically require access.
2. Configure the anonymous account with the same username and password on the computer that is sharing the network resources and then disable Automatic Password Synchronization.
If you do this you must make sure that the passwords match exactly. This approach must only be used when the "Configure the anonymous account as a domain account" mentioned earlier is not an option for some reason.
The second part concerning the permissions is easy, just add "Modify/Change" permissions for the anonymous user (which you made recognizable in first part) on the shared folder in "Sharing" tab of the properties dialog.
I guess this covers all.
Please examine these articles if you are stuck, they will be very helpful:
How to create a virtual directory on an existing Web site to a folder that resides on a remote computerHow to access network files from IIS applicationsHow to Enable Pass-through Authentication for UNC Virtual Directories