How-to Create an Application Root
IIS 5.0 allows for multiple websites to run on the same server. Each
website can act as its own Application by setting the Application Root.
Depending on your server hardware setup, IIS can handle 100's of sites at once.
Here is how to setup...
1. Open Internet Service Manager MMC
(Start button, Control Panel, Administrative Tools, Internet Service Manager)
2. Located on the left side of the MMC, locate the Default Web and
click the + button
to expand the list of webs.
3. Right-click on the web your going to make an application root and choose
properties

A window similiar to this one will appear. Notice the Create Button
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4. Click the Create button
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5. Notice the Create Button changed to the Remove button
After your done, the folder picture shown above will appear like a box that is
open

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