>Ok, you were right. I really need a virtual directory. I created it and it works. I just can't understand why VS.NET requires it when it is simply under the root.

Each virtual is considered a physical application. Withouth this the probing goes to your root virutal bin directory whichis the base where all binaries are found.

It's good that it works this way - if it didn't you have all sorts of issues finding binary files if you are in a subdirectory of an application.