>I need to create a Site and in 3 subfolders/virtual directories for three web applications. What I don't understand is what files should be in the Parent/Site folder? Here is the example of the folder structure:
>

>c:\inetpub\wwwroot\SiteName\applic1
>c:\inetpub\wwwroot\SiteName\applic2
>c:\inetpub\wwwroot\SiteName\applic3
>

>
>Therefore, when I create the site (SiteName) and point to the physical folder \SiteName and there are no files there, how will it work?

Is this IIS6 or IIS7 ?

IAC this may help: http://www.iis.net/learn/get-started/planning-your-iis-architecture/understanding-sites-applications-and-virtual-directories-on-iis