Workflow and ServiceDesk Community

We're seting up Workflow 7.1 on a test server and got the following error during the installation about  'IIS APPPOOL\DefaultAppPool'

I tried to search on the error in the KB area but did not find much and also was not able to find anything helpful in the install documents. I selected Windows auth when setting up the installation but was no sure if there was some additional IIS configurations I need to do based on this error message.

Installing Workflow Server..
Checking Server Extensions service running
Setting local machine information
Process timeouts and escalations
Checking Server Extensions service running
Make deployment managed
Copying Workflow Server installer..
Workflow Server role installed.
Workflow SymQ Setup completed
Enabling SMP Log Writer..
Installing Workflow Designer..
Workflow Designer role installed.
Installing Process Manager Portal..
Checking Server Extensions service running
Writing MSSQL connection instance to web configuration file..
Writing Report snapshots location to web configuration file..
Process Manager Portal role installed.
Preparing SQL scripts to execute..
Checking Server Extensions service running
SMP server credentials saved.
Executing database integration strategy..
Checking if database ProcessManager already exists..
Creating new database ProcessManager..
Granting system accounts access to database..
Processing: ASPNET
Granting DB access to FSTEST\ASPNET
Processing: NETWORK SERVICE
Granting DB access to NT AUTHORITY\NETWORK SERVICE
Granting DB access to IIS APPPOOL\DefaultAppPool
Database integration strategy failed due to an error: Error setting permissions: Windows NT user or group 'IIS APPPOOL\DefaultAppPool' not found. Check the name again.
Windows NT user or group 'IIS APPPOOL\DefaultAppPool' not found. Check the name again.
User or role 'IIS APPPOOL\DefaultAppPool' does not exist in this database.
Granting DB access to users failed. You must manually set up accounts like NETWORK SERVICE and ASPNET to have permissions to this database.
System.Exception: Database Configuration could not be installed correct. Installation cannot be continued
   at Symantec.Workflow.Installer.InstallerManager.Run() in c:\build\projects\MP1_KB54090\install\installers\InstallerManager\InstallerManager.cs:line 67
Installation Failed.

There's a bug in the WF installation wizard, it mistakenly assumes that your SQL server is local.  It then proceeds to try and grant permissions to non-existent virtual accounts that only exist on IIS 7.5 servers. 

Follow the steps outlined here:  https://www-secure.symantec.com/connect/articles/enabling-pass-through-ad-authentication-workflow-71

Specifically, the steps tagged with *NEW* are designed to avoid this error.