To create a virtual directory by using IIS Manager
In Connections Pane expand the Local computer name and the Sites folder and
find the Website which you want to create Virtual Directory and follow below steps.
1. Right Click on Sites where you want to create the Virtual Directory.
2. After clicking Add Virtual Directory… below screen will appear.
3. Now provide the Alias and Physical Path.
a. Alias: Type a name for the virtual directory. Type a tiny name that is effortless to type, because the user types this name to access the Web site.
b. Physical Path: Browse to the directory that contains the virtual directory.
4. Click OK Button.
5. Now go to the Connections Pane now you will see your Virtual Directory is added under your selection site and folder.
6. Next step is Configure security for a virtual directory.
a. Now select your Virtual Directory and then click on the Edit Permission… which is under Actions Pane now you will see the properties dialog box appear on screen
b. Now select the Security tab and click the Edit… button after clicking Edit… button permission dialog box will appear.
c. In permission dialog box now click the Add… now again a dialog box appear after clicking Add… button, in this dialog box again click a button Advanced…
d. Now again a dialog box will appear and now in this dialog box click the Find Now button and select the IIS_IUSER will select and press OK.
7. After clicking OK button you will see your last dialog box will appear and now again click the OK button in the new dialog box.
8. Now give the permissions by check the check box and click the Apply and OK button to close the permission dialog box.
9. Now press the OK button to close the Properties dialog box.