How to host multiple application in single domain/iis

Question

Hi am new to asp.net
we have an domain for example www.testdomain.com.I have created a web application with the namenewapplication and hosted like below
ie(www.testdomain.com/newapplication/default.aspx. its working fine.. again i created another webservice named newapplication2 and hosted like www.testdomain.com/newapplication2/service.asmx am facing the problem and getting the  error .As per my understanding its not possible to host multiple asp.net application under single domain(www.testdomain.com) correct me if am wrong.. and suggest some ideas how to acheive this?
Dev.