By default, ASP.NET runs its worker process (Aspnet_wp.exe) with a weak account (the local machine account, which is named ASPNET) to provide a more secure environment. On a domain controller or on a backup domain controller, all user accounts are domain accounts and are not local machine accounts. Therefore, Aspnet_wp.exe fails to start because it cannot find a local account named "localmachinename\ASPNET". To provide a valid user account on the domain controller, you must specify an explicit account in the section of the Machine.config file, or you must use the SYSTEM account.
For more details : FIX: ASP.NET Does Not Work with the Default ASPNET Account on a Domain Controller