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Cant run web app using VS Ultimate 2010

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I recently upgraded from VS Pro 2010 to Ultimate 2010. In Pro I was able to open my web app from TFS 2008 and open the web site(Start without debugging), had no problems. But now when I try to do the same thing on the same web app, I get the following error:

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. C:\WebApps\Cas_Alerts\CAS_Alerts\web.config 

This is on a local PC on windows 7 32 bit, and theres no local IIS, there was not need since VS Pro 2010 and 2008 creates one when you're developing locally. Does this mean I now have to create a virtual folder in IIS (from the publish menu) in order to run the web app? Doesnt VS create one when you run the web app anyway?

Please help.

Thanks

 


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