Currently I have a .net web forms app that works correctly under the root site www.mydomain.com
Now, what I'm trying to do is to deploy the MVC.net mobile version of the app above and make it respond to: www.mydomain.com/mobile
So I copied the mobile app to inetpub\mobile (the parent web forms app resides at inetpub\myapp, i.e., they are located on sibling folders).
Then, I went to IIS 7 and created a new application for the mobile app under my www.mydomain.com site:

When I test it, the app loads fine but when I click on a link, for example /mobile/Places/Places, the requested URL seems to be handled by web forms instead of MVC's routing since the error adds the aspx extension:
Requested URL: /mobile/Places/Places.aspx

It seems to me that even though the apps are located on different folders the mobile version is somehow inheriting settings from the web forms app (parent).
The mobile app actually works fine when I create a subdomain mobile.mydomain.com but it really bugs me I can't find away to make it work on www.mydomain.com/mobile.
I even tried wrapping the system.web and system.webServer tags in the mobile app config file with location elements setting inheritInChildApplications to false but no luck:
<location path="." inheritInChildApplications="false">
<system.web>
<location path="." inheritInChildApplications="false">
<system.webServer>
Any ideas?