Asp.net 2005 Beta Error

Hello...
I created an asp.net application using vb.net2003..
now..I converted it into vb.net2005..
And it gives me just this one error...

Code:

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Error        1        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:\inetpub\wwwroot\onlinetest\backup\onlinetest\web.config        39

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I checked the settings in IIS...its configured for execute permissions for this project,but,i dont know what is wrong,please help me...
Thanks
Please help,Thanks

Godwin