Some web applications will not function properly through Internet Information Services unless the Virtual Directory it is located within is set to run as an application. This article will assist you in the configuration of this setting.
Open IIS by navigating to Start -> Administrative Tools -> Internet Information Services (IIS) Manager.
Click the plus sign next to Computer Name, then the plus sign next to Web Sites, and then the plus sign next to the site which contains the Virtual Directory in question. (For instructions on creating a new Virtual Directory, please reference the following Knowledge Base article.) Right click on the Virtual Directory and choose Properties.
At the bottom of the first window which comes up at the Properties window, you will see options for Application Settings. Click on the button on the right which says Create.
You should now see the options for setting a name for the Application, as well as setting Execute permissions and assigning a specific Application Pool. The permissions should at least be set to a Read level. Click OK.
Your Virtual Directory is now set to run as an Application.