How to fix subfolders IIS7 functionality?
Solution 1:
As stated in the previous answers given to you, you need to create each site as a virtual host of its own in IIS. However the godaddy account does not seem to allow this, it only lets you have 1 primary domain, and all the other domains as subfolders of that domain. Basically godaddy are only allowing you 1 virtual host in IIS.
You need to upgrade your account to one that allows multiple virtual hosts, or change providers, to do what you want.