Admin Dashboard missing

Topics: Administration, Installing Orchard
Apr 26 at 5:58 AM
On IIS's Default Web Site:
Orchard is working fine, i.e., after admin login, the Dashboard appears and on the upper-right page shows "admin" as the login user.

When the same orchard folder is part of a parent's WEB APPLICATION in the same IIS server, admin login no longer shows the Dashboard. If i type the wrong password, it correctly tells me invalid login, so with the right password login did complete, i.e., no error message. However, admin dashboard is not showing nor the upper-right login-ed user name. It appears that I'm in Anonymous mode after login to admin. The orchard Web Application folder (and subfolders) has IIS_USRS set with Modify permissions.

Why am I getting such problems? Thank you for your help in advance.