Using location in web.config

I've got 2 folders, let's call them "Admins" and "Users"

I have set up the .Net membership 2.0 and now am securing each of them.  However, when I login to Admins, I get this error on every page: 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.

I shouldn't need to create the Admins and Users folders as applications in IIS, do I?  They're all a part of one application, just different login areas with different pages depending on their roles.

Part of my web.config is listed below.
1 <location path="Users">
2 <system.web>
3 <au ...