To create an application in IIS, you have to perform the following steps (for example MyApp, installed in c:\inetpub\wwwroot\MyApp):
- Start "Internet Information Services" (Start - Settings - Control Panel - Administrative Tools)
- Navigate to the MyApp virtual directory and select it
- Rightclick it and select "Properties"
- Press the "Create" button and accept the default name
- Press OK
- Make sure that Execute Permissions are set to "Scripts only"