I keep running into this same problem, and I never find a solution other than just creating a separate website. I always get errors when creating an asp.net virtual directory inside of another asp.net site. I have found many blogs with work around to remove things like http modules and I belive another...

There seems to different behavior in the http redirect module between IIS 7.0 and IIS 6.0. In IIS 6.0 if you create a virtual directory and then redirect the virtual directory to some other locations the redirect is tied to the virtual directory alias/name, you can create a second and third virtual directory...

Does anyone know how to change the default location of a web.config file for an ASP.Net website? I want to do this so that I can have one set of code being used by two different websites but having each website have it's own web.config file. Thanks for the help!!!