on local machine ,i created sample project on mvc4 (razor) and create directory named \"x\" and put a text file \"a.txt\" in it.
http://localhost:64471/x/a.t
I tested with path="x" in root web.config. It restrict everything under x folder; it won't even let me browse ~/x. I get redirected to login page.
Could you try full path to a.txt like this in root web.config?
If it still doesn't work, you can try creating a web.config inside x folder with the following content.