Need help with setting up multi-store url configuration for Magento 1.7

I have setup a Magento 1.7 multi-store installation for a main Retail website, and a Wholesale website/store using the same Root Category. The main website is setup correctly, is working and can be viewed online. I have been trying to configure/set up the url access to my second website (wholesale) using of sub-directory method in preference, so that my main (retail) site is accessed through [login to view URL], and my wholesale website(has one store) can be reached through [login to view URL] I have made a sub-folder called /wholesale in my development root Magento directory, placed a modified version of [login to view URL], and .htaccess in this sub-directory and tested this. I get the error: "app/[login to view URL] was not found" no matter if I have $mageFilename = '../app/[login to view URL]'; or I give the full access path to the /app directory. I am looking for a freelancer with previous experience with Magento 1.7 multi-store setup, to help me with setting up my url access correctly. I also have two parked domains, in case that you recommend parked domain method which does not require the /wholesale sub-directory. What is important is that the setup has to be clear, so that I could repeat the process again on copies of this website. Please note that my Magento installation is in /magento sub-directory in the development environment on siteground hosting. Please contact me if you require additional information.