Issue in IIS Web Application

We are facing a strange issue.

Our Server (Win Server 2008 R2 Standard, IIS7) has a Web Application (Lets say "APPLN") on IIS7:

APPLN has following properties:
- Code base = Folder1
- Application Pool = Pool1
- .Net FrameworkCode = 4.0

It is giving us a Session error using CHROME browser as the pages do not retain session after "Response.Redirect()".

Now if I create another application on IIS7 (Lets say "APPLN-2") with following properties :
- Code base = Folder1
- Application Pool = Pool1
- .Net FrameworkCode = 4.0

(Same as application before)

Now the second application works perfectly fine without any Session errors.

We tried:
1. Deleting and recreating the First application "APPLN"
2. Restarted IIS, Windows Server
3. Changing folder locations for the Code

But nothing seems to work for the First application "APPLN" !!!!
Any ideas guys?
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Dave BaldwinFixer of ProblemsCommented:
There is obviously some small difference.  And I believe you may have the sequence wrong.

Should be...

1. Deleting the First application "APPLN"
2. Restarted IIS, Windows Server
3. Recreate the First application "APPLN"
(4 then restart again?)
ArikkanAuthor Commented:
That is what we did
Dave BaldwinFixer of ProblemsCommented:
Ok... then did it work after you recreated it?  What if you recreate it as 'APPLN1'?  Is there a possibility the name 'APPLN' is causing a problem?
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ArikkanAuthor Commented:
If we recreate it as any other name than 'APPLN', it is working (APPLN1, APPLN-1, APPLN2.....)
We deleted all the temporary files on the server also but it did not help.
No idea why that name is causing issue.

But we don't want to change that name.

So we are in a fix on how to resolve this issue.
Dave BaldwinFixer of ProblemsCommented:
But we don't want to change that name.
Well, I'd rename it and be done with it by now.  Why is it that important?
ArikkanAuthor Commented:
This is a production environment.
We really cannot change the name of the application on the server.
So its a bummer.

We have to solve it.

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Dave BaldwinFixer of ProblemsCommented:
If there is something in the IIS or Chrome code that is triggered by that name, you may not be able to 'solve it' because it may be totally out of your control.  For a test, you might put back the .NET 3.5 version to see what happens.
ArikkanAuthor Commented:
ok we will try this.
ArikkanAuthor Commented:
Issue was with Visual Studio config file and no solution above gave me this answer.
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