I am new to IIS and trying to set up a site on it. I am trying to set up Microsft.Hosting.SharePoint2010.Services. I keep getting the following error.

Here are my Basic Settings. The physical path is C:\inetpub\wwwroot\Hosting\Microsoft.Hosting.SharePoint2010\Microsoft.Hosting.SharePoint2010.Services which actually exists on the computer. I get the error above when I click the Test Settings button. I suppose for some reason it is not serving this folder. Does anyone have any ideas?
