The vitural directory is /dnn. I am tring to it be dev.hyper.com. I have a complete copy of the DNN site in the wwwroot site where I could technically point to it if needed to. I want to get the dnn site to be hit by typing 12.27.134.116 instead of 12.27.134.116/dnn.
On your web server, open the Internet Information Services Manager via Administration Tools. Expand the tree until you find Default Web Site. Right-click and select properties. Then select the Home Directory tab. Now change the "Local path" and add "dnn" to the end (for example, C:\inetpub\wwwroot\dnn\". Or, as I understood your original question, you could change the "Local path" to C:\dnn\ just as easily. This would not be standard practice, and would likely cause anyone else maintaining this site in the future to do some serious head scratching. If you do change your local path to "C:\dnn", I would definitely remove the "dnn" folder from your C:\inetpub\wwwroot folder, to prevent someone trying to update the site from updating the files in the wrong folder.
You will need to verify that the other settings for the default web site (execute permissions, ASP.NET version, etc) are set correctly.
Then the next thing would be to get the site to be picked up by dev.hyper.com.
This will require editing the DNS settings on your local DNS server. Unfortunately, this is outside my knowledge. I always let our system administrator make these changes for me.