Deleting a folder from the control panel?

I created a new folder called (?\test\?) from the control panel. So the site directory reads E:\web\aitpalaskan\htdocs\test\web.configinstead of the standard E:\web\aitpalaskan\htdocs\web.config The reason I did this is I was trying to hide the website. For some reason there has been an error outcome from the result. Does anyone know how I can get my application to work -or- delete the \test\ folder from my application? I just want to get my web application to work again but I know the control panel is very sensitive and I do not want disable my account beyond repair if it is not too late!
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I really appreciate anyone?s help or opinion.
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Thank you,
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WJ
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Server Error in '/' Application.



Configuration Error
Description: An error occurred during the processing of a configuration file required to service this request. Please review the specific error details below and modify your configuration file appropriately.

Parser Error Message: 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.

Source Error: </o>



</o>Line 4: <!-- enable forms authentication --></o>Line 5: <system.web></o>Line 6: <authentication mode="Forms"></o>Line 7: <forms name="ASP101SampleAuth" loginUrl="login.aspx" /></o>Line 8: </authentication></o>

Source File: E:\web\aitpalaskan\htdocs\test\web.config Line: 6 </o>



Version Information:Microsoft .NET Framework Version:1.1.4322.2032; ASP.NET Version:1.1.4322.2032