Event id 1310 source ASP.NET 4.0.30319.0

Hi I'm not sure what this error is or how to correct it:

Event code: 3008
Event message: A configuration error has occurred.
Event time: 1/25/2013 11:56:33 AM
Event time (UTC): 1/25/2013 5:56:33 PM
Event ID: 62fce806f72c424d85b3548473ddc0f5
Event sequence: 54
Event occurrence: 11
Event detail code: 0

Application information:
    Application domain: /LM/W3SVC/1/ROOT-1-130034534090133488
    Trust level: Full
    Application Virtual Path: /
    Application Path: C:\inetpub\wwwroot\
    Machine name: SERVER08

Process information:
    Process ID: 4216
    Process name: w3wp.exe
    Account name: IIS APPPOOL\DefaultAppPool

Exception information:
    Exception type: ConfigurationErrorsException
    Exception message: 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. (C:\Program Files\Microsoft\Exchange Server\V14\ClientAccess\owa\web.config line 37)
   at System.Configuration.ConfigurationSchemaErrors.ThrowIfErrors(Boolean ignoreLocal)
   at System.Configuration.BaseConfigurationRecord.GetSectionRecursive(String configKey, Boolean getLkg, Boolean checkPermission, Boolean getRuntimeObject, Boolean requestIsHere, Object& result, Object& resultRuntimeObject)
   at System.Configuration.BaseConfigurationRecord.GetSection(String configKey)
   at System.Web.Configuration.RuntimeConfig.GetSectionObject(String sectionName)
   at System.Web.Configuration.RuntimeConfig.GetSection(String sectionName, Type type, ResultsIndex index)
   at System.Web.Configuration.RuntimeConfig.get_Identity()
   at System.Web.HttpContext.SetImpersonationEnabled()
   at System.Web.HttpRuntime.ProcessRequestNotificationPrivate(IIS7WorkerRequest wr, HttpContext context)



Request information:
    Request URL: https://webmail.abcd.org:443/exchange/user/Inbox/?Cmd=contents&View=Messages&Page=1
    Request path: /exchange/user/Inbox/
    User host address: 50.77.35.41
    User:  
    Is authenticated: False
    Authentication Type:  
    Thread account name: IIS APPPOOL\DefaultAppPool

Thread information:
    Thread ID: 2143
    Thread account name: IIS APPPOOL\DefaultAppPool
    Is impersonating: False
    Stack trace:    at System.Configuration.ConfigurationSchemaErrors.ThrowIfErrors(Boolean ignoreLocal)
   at System.Configuration.BaseConfigurationRecord.GetSectionRecursive(String configKey, Boolean getLkg, Boolean checkPermission, Boolean getRuntimeObject, Boolean requestIsHere, Object& result, Object& resultRuntimeObject)
   at System.Configuration.BaseConfigurationRecord.GetSection(String configKey)
   at System.Web.Configuration.RuntimeConfig.GetSectionObject(String sectionName)
   at System.Web.Configuration.RuntimeConfig.GetSection(String sectionName, Type type, ResultsIndex index)
   at System.Web.Configuration.RuntimeConfig.get_Identity()
   at System.Web.HttpContext.SetImpersonationEnabled()
   at System.Web.HttpRuntime.ProcessRequestNotificationPrivate(IIS7WorkerRequest wr, HttpContext context)


Custom event details: