Virtual directories are used mostly by webservers to define other hosts which that machine will answer for. . If a server in the domain netsol.com was hosting additional websites, they would need a virtual directory that information from the other websites is stored.
Virtual Directory: This enables the application to get exposed to the external environment. If some one in the intranet needs to access the application Via URL then if the person have clicked the URL then windows will check for the directory accessibility. If its virtua(Web Shared) then IE will try to access related aspx file. Regards, Venkatesan Prabu. J