This is my file structure:

1. I created a new test folder in wwwroot called "webapplication1" to mimic your instructions.

 C:\Inetpub\wwwroot\webapplication1\

2. I copied CuteSoft_client into webapplication1 folder

 

3. I also copied the folder vb into webapplication1 folder
 

4. I also created a bin folder and copied the 2 dll files and the license into it.

 

5. To be safe i also copied the 2 dll files and the license to my wwwroot/bin

6. I finally have a web.config file in webapplication1 folder

<configuration>
 <!-- application specific settings -->
 <appSettings>
  <add key="DictionaryFolder" value="bin" />
 </appSettings>
 <system.web>
  <browserCaps>
       tagwriter=System.Web.UI.HtmlTextWriter
  </browserCaps>
 </system.web>
</configuration>

I checked the file it cannot find. It is there:

 

C:\Inetpub\wwwroot\webapplication1\CuteSoft_Client\CuteEditor\Configuration\Security\default.config