Using IIS 7 in Windows 7 Ultimate development box, DNN 6.2.4..

After developing a module and testing it in the development environment, I install it into a test DNN web site. I notice that DNN not only installs the module in the DesktopModules folder, and installs the module's .dll's into the .bin folder (as expected), but it also sets the module's folder as an Application in IIS.

This seems to work fine, except when there are images to be displayed.

I have two modules in particular: 
-- One has a repeater, and uses an image handler ".ashx" call to fetch images from a database for an Image control in the repeater. 
-- The other module has an Image control in a GridView using simple URL's to image files. 

In both modules, the images will not display once they are installed to the test site. I'm guessing this is because the module is running on a different worker process from the main site, since it is an Application in IIS.

The fix (workaround?) is to demote the module Application back to a normal folder in IIS manager.

Is there any way to prevent the module being installed as an Application in IIS 7?