I have a static web site with a blog (an asp.net application), the blog is in a subdirectory of the web site so:

example.com/, example.com/Something.htm, example.com/folder/somefile.htm, etc. - are all static files

example.com/blog, example.com/blog/categories.aspx, example.com/blog/2011/11/09/post-name.aspx, etc. - all go to the blog app

I'm upgrading the static part of the web site to a dynamic site (also an asp.net application) and the blog is incompatible with the new app (the app needs handlers and modules loaded in web.config that don't work with the blog)

Also, I have to keep all the old URLs the same - so I can't move the blog to a subdomain or the new app to a folder and the blog generates links based on its folder so clever redirection tricks wouldn't work.

Is there a way to place an asp.net application in a folder inside another application (either as a real or virtual folder) so that the root web.config settings don't apply to the application folder? Or some other trick I didn't think of?

The system is running IIS7 on Windows Server 2008 64bit, I have full control over the server's configuration.

I can't modify the blog's source code but I can edit its web.config and other configuration.

I can modify the source of the new application but I can't make it compatible with the blog (most of its usefulness comes from a 3rd party library that is not compatible with the blog).

The blog in an asp.net 3.5 webforms application

The new root application is an asp.net 4.0 mvc application