ASP Error

Hi All,
I have been playing with adding an ASP.NET site on a secondary folder for one of my clients – to the effect of website.com/newsite/
It was running fine on my local machine, accessing the appropriate SQL Server at Jodo. I copied it all over, and I get this error:

Server Error in ‘/’ Application.

          [B] [I]Configuration Error[/I] [/B]

          [FONT=Arial, Helvetica, Geneva, SunSans-Regular, sans-serif]              [B] Description: [/B]An error occurred during the processing of a configuration file required to service this request. Please review the specific error details below and modify your configuration file appropriately. 

         [B] Parser Error Message: [/B]It is an error to use a section registered as allowDefinition='MachineToApplication' beyond application level.  This error can be caused by a virtual directory not being configured as an application in IIS.

         [B]Source Error:[/B] 

                                                                   Line 96:         

Line 97:
Line 98:
Line 99:
Line 100:
Source File: D:\hshome\dentech\dentech-inc.com\metal\web.config Line: 98

                       [B]Version Information:[/B] Microsoft .NET Framework Version:2.0.50727.42; ASP.NET Version:2.0.50727.210[/FONT]

this is the key:
Parser Error Message: It is an error to use a section registered as allowDefinition=‘MachineToApplication’ beyond application level. This error can be caused by a virtual directory not being configured as an application in IIS.

You have the trust level specified in the web.config remove it and will get either a better error, or it will work.

I don’t have trust set in that web.config, but it may be inheriting from a parent folder (the primary website).
My understanding is it is a setting in IIS to allow that folder to run as an app, right? I just submitted a ticket in cerebus (AJQ-40379-591).