[eluser]Rolly1971[/eluser]
from when i started using CI the index.php has a if-else statement in it that first looks for the application folder under the root of the basepath EG: it would first try and determine id the application folder exists at: example.com/application, if it does not it then moves on to example.com/system/application. all you have to do is move the folder to the same root level as the system folder, no code changes needed.
as a few others mentioned it is a good thing to do if you are running multiple ci apps off the same site, that way you only have 1 system folder instead of 2, 3, 4 or more.
you can even move the system folder outside the root web directory, just change the index.php file to reflect that path by adding: ../ to the variable.
