The IIS Apps tool in the control panel allows you to designate a directory as the starting point (application root) for an application.
To create a web application, follow these steps:
Log in to the control panel Go to the IIS Manager and click on IIS Apps The directory structure of your web site will be displayed. Directories currently set as application roots are displayed with a special IIS application icon. To navigate to a subdirectory, click on the + sign Click the directory you wish to designate as an application root. Click "Install Application."