Hi,
You can't really copy an application to the server and expect it to run. You will need to configure your IIS to set it as an application, and unless you are very clear about what you are doing, you will want to avoid putting one application inside another application's child folders. Otherwise you may run into all kind of problems like the one you had because the child directory inherits config files from parent directory.
If you wish to start with our sample project, you can try to run it locally first. If you use Visual Studio, you can run it directly from Visual Studio and that should avoid both problems for you. Since we are a component vendor, our support will be focus on our product. As a result, we will not be able to provide support on generic IIS configuration or troubleshooting issues. So if you are not familiar with those, you may want to seek other resource.
You can review our official support policy at here:
http://www.essentialobjects.com/Forum/Default.aspx?g=posts&t=1368Thanks!