Hint: For improved responsiveness, use Internet Explorer
4 (or above) with Javascript enabled, choose 'Dynamic' from
the View dropdown and hit 'Set Options' to save your changes.
This is the problem you cannot use virtual directory, you must setup the IIS site root in H:\sites\scratchSite3\ and call the site inside the browser with only http://localhost and not http://localhost/ScratchSite3/