Different Domains on Same Hosting Account

Could this be confusing Google?

[elklabone]

A client of ours has a website set up at:

www.example.com

The site at domain.com is inactive.

They added a folder called /newbusiness/ which is accessible like this:

www.example.com/newbusiness/

Then added an "alias" that points to the new site:
[new domain] is now the same as www.example.com/newbusiness/

Both sites have the same PR and the same backlinks in Google, so it looks like things have been folded together OK, but this site has dropped from Google. Is it possible it's seeing itself as "duplicate content"?

Yahoo does show www.example.com/newbusiness/ as being a backlink for [new domain].

Will this hurt anything, or should we move to a separte hosting account?

--Mark

[edited by: ciml at 11:15 am (utc) on Dec. 29, 2004]
[edit reason] Examplified [/edit]

[elklabone]

Anyone?

[Symbios]

If the content is the same for both then it is riske, I'd suggest a 301 redirect from one to the other, probaly from the folder to the main domain.