Most probably you need to change the permissions settings over ProjectManager folder.
- NETWORK SERVICE or ASP.NET - FULL ACCESS
- SYSTEM - FULL ACCESS
- Your administrative account - FULL ACCESS
- other users - READ PERMISSIONS.
The project manager can be started under default application pools, or custom one. You can add the project manager to a different website or under the default one. ASP.NET Impersonation could be disabled. You can only enable Windows Authentication.
We regret to inform you that there is not document that describe each step of this process, since it is a standard installation of exe and configuring IIS server.
the Telerik team