I've configured a rewrite rule in IIS to basically rewrite the request from http://mydomain to http://mydomain/subfolder/mywebservice.asmx and I can verify that the rewrite triggers and rewrites correctly.
However the problem is that once it's rewritten I get an IIS error "The file extension for the requested URL does not have a handler configured to process the request on the Web server."
When I navigate directly to http://mydomain/subfolder/mywebservice.asmx it works and the .asmx extension is handled correctly.
What am I missing?