When creating a new web application, you may experience this error:

The directory C:\Inetpub\wwwroot\wss\VirtualDirectories\80 is already being used by another IIS Web Site.  Choose a different root directory for your new Web application.

Solution:
1. Ensure you have a proper dns name / entry in the hosts file of your server for the new url you are wanting to create.
2. Ensure you have typed in the ‘host header’ typed in when creating the new web application.
3. If this doesnt work, open IIS Manager – Start>run> inetmgr> and verify the home directory – it could be located on a different drive.