ASA 5510 internal traffic dropped

I am trying to create a pretty basic two interface setup (inside and outside, or as I have labeled them in my config LAN and WAN). I have a web server on 192.168.7.3 and can access it from an outside network just fine, but cannot access the page internally (like say on machine 192.168.7.4)! What gives? I am sure it is something basic. I appreciate any help. If you can't tell I am new to ASA's and am just trying to figure this stuff out as I go along. The setup is pretty basic, Internet----ASA----Inside network (where the web server is and some other machines). No DMZ or any other routers.

The packet tracer in ASDM says that everything is fine but I can't connect internally to the web server. The logs show

19:34:07|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags ACK on interface LAN

19:34:06|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags ACK on interface LAN

19:34:06|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags SYN ACK on interface LAN

19:34:05|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags ACK on interface LAN

19:34:04|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags ACK on interface LAN

19:34:04|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags SYN ACK on interface LAN

19:34:03|106015|192.168.7.3|192.168.7.4|Deny TCP (no connection) from 192.168.7.3/80 to 192.168.7.4/63746 flags SYN ACK on interface LAN

Config file below:


ASA Version 8.0(2)

!

hostname ciscoasa

enable password xBWw8/XdalZA81PL encrypted

names

!

interface Ethernet0/0

nameif WAN

security-level 0

ip address 75.XX.XX.XX 255.255.255.248

!

interface Ethernet0/1

nameif LAN

security-level 100

ip address 192.168.7.1 255.255.255.0

!

interface Ethernet0/2

shutdown

no nameif

no security-level

no ip address

!

interface Ethernet0/3

shutdown

no nameif

no security-level

no ip address

!

interface Management0/0

nameif management

security-level 100

ip address 192.168.1.1 255.255.255.0

management-only

!

passwd 2KVQrbNIdI.2EYOU encrypted

ftp mode passive

same-security-traffic permit inter-interface

same-security-traffic permit intra-interface

access-list PERMIT_IN extended permit tcp any host 75.XX.XX.XX eq www

access-list PERMIT_IN extended permit tcp any interface WAN eq www

access-list PERMIT_OUT extended permit ip 192.168.7.0 255.255.255.0 any

access-list PERMIT_OUT extended permit ip host 192.168.7.3 any

access-list PERMIT_OUT extended permit ip any host 192.168.7.3

pager lines 24

logging enable

logging asdm informational

mtu WAN 1500

mtu LAN 1500

mtu management 1500

no failover

icmp unreachable rate-limit 1 burst-size 1

asdm image disk0:/asdm-602.bin

no asdm history enable

arp timeout 14400

global (WAN) 1 interface

global (LAN) 1 interface

nat (LAN) 0 192.168.7.0 192.168.7.50

static (LAN,WAN) tcp interface www 192.168.7.3 www netmask 255.255.255.255

access-group PERMIT_IN in interface WAN

access-group PERMIT_OUT in interface LAN

route WAN 0.0.0.0 0.0.0.0 75.XX.XX.XX 1

timeout xlate 3:00:00

timeout conn 1:00:00 half-closed 0:10:00 udp 0:02:00 icmp 0:00:02

timeout sunrpc 0:10:00 h323 0:05:00 h225 1:00:00 mgcp 0:05:00 mgcp-pat 0:05:00

timeout sip 0:30:00 sip_media 0:02:00 sip-invite 0:03:00 sip-disconnect 0:02:00

timeout uauth 0:05:00 absolute

dynamic-access-policy-record DfltAccessPolicy

aaa authentication ssh console LOCAL

http server enable

http 192.168.1.0 255.255.255.0 management

no snmp-server location

no snmp-server contact

snmp-server enable traps snmp authentication linkup linkdown coldstart

no crypto isakmp nat-traversal

telnet timeout 5

ssh 192.168.7.3 255.255.255.255 LAN

ssh timeout 5

console timeout 0

dhcpd dns 8.8.8.8

!

dhcpd address 192.168.7.50-192.168.7.150 LAN

dhcpd enable LAN

!

dhcpd address 192.168.1.2-192.168.1.254 management

dhcpd enable management

!

threat-detection basic-threat

threat-detection statistics access-list

!

class-map inspection_default

match default-inspection-traffic

!

!

policy-map type inspect dns preset_dns_map

parameters

message-length maximum 512

policy-map global_policy

class inspection_default

inspect dns preset_dns_map

inspect ftp

inspect h323 h225

inspect h323 ras

inspect rsh

inspect rtsp

inspect esmtp

inspect sqlnet

inspect skinny

inspect sunrpc

inspect xdmcp

inspect sip

inspect netbios

inspect tftp

!

service-policy global_policy global

: end