Moved WP root to its own directory and posts not publishing or displaying

I have installed a new set up on a new Windows Server 2012 R2 with IIS 8. I used the Microsoft IIS installation manager. Everything went perfectly. To avoid cluttering up my C: drive, I moved the wordpress root directory to the D: drive. I changed the wp-config files and the index.php files in the root directory as required.

I updated IIS to point to the new root directory.

I set up permalinks to use post name.

I can log into the dashboard. Upload media. Add new plugs in. Add new post. Edit post. Publish post. All from the dashboard.

But I can not view post. I get a blank page or a page not found error.

To test DNS and IIS configuration, I added an index.html file to the root directory and it displays perfectly from the web site address.

So the problem is either the posts are NOT being created or they are not available, or permissions.

Now I have seem some statements on the forum that the database needs to be updated or I need to install phpmanager from codex. But no clear information on what I should change. Or it that would solve anything.

Any help on this would be greatly appreciated.