App not running from sub folder

[John]

Hi

My asp.net is in the Events sub folder of the root folder. In the root
folder I have a web.config file which has the following code under
system.web section;

<authentication mode="Forms">
<forms name="LoginAuthCookie" loginUrl="~/Events/Login.aspx" />
</authentication>

However when I enter the url http://localhost/Events/, I get the below
error;

Directory Listing Denied
This Virtual Directory does not allow contents to be listed.

What am I missing and why does the login.aspx form not come up?

Thanks

Regards