couple of things to check
check if you're virtual directory
cm2 is running on the right version of .net framework (go to the
properties of the virtual directory->ASP.Net tab)
I'm assuming that the DNS mapping example.nyc.com is mapped to the IIS server hosting both cm and cm2 virtual directories
check if http://servername/cm2 works or not? or localhost/cm2
put in a test aspx page with a simple code like <% response.write "Success" %>
if this test page fails from cm2 but works from cm then check the application mappings of that virtual directories
vir dir->properties->Directory tab->configuration button
check if .aspx .cs or .vb is mapped aspnet_isapi.dll
verify the version of framework too.