Some or all identity references could not be translated while trying to create directory via asp.net mvc web application.

Hi All,
I should be able to create a default directory inside project's root directory when the application_start method(inside global.asax)is called for my asp.net web application.
As IIS users dont have full rights to webroot directory(for directory create) i get access denied error message while trying to create the directory.Also IIS users wont be given full access to the root as per client.I am planning to implement like below to meet the expectations of client.Please let me know if there is any better way out for than this approach?
**Approach 1:**
a.Create a new user account(windows) in the server.
b.Keep the user account name in config file.
c.Read that account from the config file and create directory with that user account using Directory Security object.
**Code:**
DirectorySecurity dacl = new DirectorySecurity();
string useraccountForDirectoryCreate = System.Net.Dns.GetHostName() + "\\" + "testaccount";
...