Cannot run asp.net mvc 2 on a subdomain while I can run on a domain

I have created an asp.net mvc 2 from template in a sub开发者_JAVA百科directory of a domain. In IIS I converted it to application.

When I try to access throuh mydomain/subdomain I get

403 - Forbidden: Access is denied

If this is IIS6, do remember to set the Wild Card Mapping for the Virtual Directory.