Failed to send HTTP request. (Error at WinHttpSendRequest: 12007)

I came across this error while installing SCCM client on a Windows 7 Machine. ccmsetup.log file was showing these errors:

Failed to send HTTP request. (Error at WinHttpSendRequest: 12002)    ccmsetup    8/18/2010 12:52:04 PM    2512 (0x09D0)
Can't connect to or retrieve file: http://smsserver/CCM_Client/ccmsetup.cab.  Will attempt a retry...    ccmsetup    8/18/2010 12:52:04 PM    2512 (0x09D0)
Next retry in 10 minute(s)...    ccmsetup    8/18/2010 12:52:04 PM    2512 (0x09D0)
Failed to send HTTP request. (Error at WinHttpSendRequest: 12002)    ccmsetup    8/18/2010 1:02:26 PM    2512 (0x09D0)
Can't connect to or retrieve file: http://smsserver/CCM_Client/ccmsetup.cab.  Will attempt a retry...    ccmsetup    8/18/2010 1:02:26 PM    2512 (0x09D0)

Solution provided at this Technet post worked for me:

-Go to IIS and expand Web Sites > CCM_Client
-Right click CCM_Client and select Permissions
-Add 'Everyone' and give them Read permissions.