Problem with XML template query

[snvanvl]

I'm having a major problem using a template to run a stored procedure!
I've created the Virtual Directory "xmltest" through IIS Manager for SQL Server. The location is c:\inetpub\xmltest\.

I've also created a Virtual Name "queries" as a template type with the same path listed above (and have checked the "allow template queries" box).

I can run the stored procedure through the following URL query (

http://localhost/xmltest?sql=execute+sp_test&root=root)...

BUT I cannot run it as a template query using this URL (

http://localhost/xmltest/queries/test.xml)

The file test.xml is at c:\inetpub\xmltest\test.xml and contains the following code:

<?xml version='1.0' ?>
<root xmlns:sql=&quot;urn:schemas-microsoft-com:xml-sql&quot;>
<sql:query>
EXECUTE sp_test
</sql:query>
</root>

I have another server that is not having a problem running template queries, but I have tried everything I know of to get my new server working and now I'm stuck!
Any ideas??
Any help will be GREATLY appreciated!