Thank you for your response.
I modified the basic settings of the parent site to point to my Kentico document root (in the link to the guide I posted above, it tells me to set it to C:\empty when using subfolder configuration).
This then will allow the site that I have configured to run at the http://www.example.com to work; however, the other sites that would be configured at http://www.example.com/site1, http://www.example.com/site2, http://www.example.com/site3 all return internal server errors.
The error is:
HTTP Error 500.19 - Internal Server Error
The requested page cannot be accessed because the related configuration data for the page is invalid.
Module IIS Web Core
Handler Not yet determined
Error Code 0x800700b7
Config Error Cannot add duplicate collection entry of type 'add' with unique key attribute 'name' set to 'ChartImageHandler'
Config File \?\C:\inetpub\wwwroot\KenticoCMS7\web.config
I have not modified any of the web.config settings, and is a fresh unmodified install of Kentico.
It almost seems that when IIS is configured to have applications under a Kentico site, the document root needs to be something other than Kentico (hence why the example says to make it go to C:\empty).
Any additional support would be fantastic. Thanks.