With the Deluxe GoDaddy hosting account, one  can host as many sites as desired, each in their own subfolder.

I had a blog, previously in its subfolder (www.mysite.com/folder/) and set that folder to be the new site (www.folder.com). Only, when I went to the site, it would redirect me to the root of the site (www.mysite.com). I looked at the mod-rewrite syntax and it seemed ok… wp-config.php did not have an option for setting the root address.

The solution was to login to wordpress and to change in settings->general settings the Wordpress address and the Blog address to be the new site.

The only thing left was to change any hardcoded hyperlinks!