SOLVED!!! CS0016: Could not write to output file ...

You need to allow full control to two users of your system "Network Service " and "YourComputerName\IIS_IUSERS ".

Just right click following folders
1. C:\Windows\Temp
2. C:\Windows\Microsoft.NET\Framework\v2.0.50727\Temporary ASP.NET Files

and go to Security tab, click Edit and click Add and try adding "Network Service" and "YourComputerName\IIS_IUSERS", from the Permission checkbox, click Full Control. Click Apply and OK.

Restart your IIS and try running your web application. Hopefully it should run.