Application variables should keep their value for all subfolders between the "application root".
The "application root" is something you can define yourself using the IIS Management Console. If you change a directory into a Virtual Directory, it will act as a different application with different application variables (not 100% sure if you do need a global.asa file, though).
So, as long as you have a single application root, all other normal folders beneath it, should be able to read and set the same set of application variables.
If this is not the case, maybe you can post some code and describe your situation in some more detail.
AFAIK, the way you describe things shouldn't happen.....
Imar
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Imar Spaanjaars
Everyone is unique, except for me.