HTTP 404 - File not found

I have just installed k2.net on my machine. when i tried to open Workspace i am getting "404 - file not found". I am accessing it from my local machine. My user account is memer of admin group.
Machine configured as follows:
> os : 2003 (not a DC)
> sps installed
> application pool configured for K2V3: MSSharePointPortalAppPool (this pool running under "Local System" account]
> anonymous is disabled, integrated windows authentication checked in iis
> Sql MSDE also installed on same machine

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NOTE :
1) "Authentication with server failed" message is coming when i access server from K2.net 2003 Service Manager.
2) No error messages during installation.
3) server info in .config files are verified and they are correct.

waiting for resolution/clues.

Thanks