Error after making a folder an application

[Andy Sutorius]

Hi,

I have been working on creating an administrative section of a website. I
have been using MS KB Article 301240. I created a root/test2 folder and
placed all of the files inside of test2. I went to
http://localhost/psyche/test2 to see the login page but instead received an
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." I went to IIS and converted test2 from a folder to an application.
I refreshed and now I receive this error: "Could not load type
'psyche.test2.logon'." Your wisdom is appreciated in how to get rid of this
error.

Andy