UPDATE: This method is generally used in situations where you have relative paths in your project so that links (image, href, css, etc) work on your development environment (where the VS web server inserts a virtual path), as well as your production environment that may or may not have that same virtual path.  The simpler way to handle this situation is to change the virtual path in your development environment.  To do this, click on your web site project and look in the properties dialog.  You should see a Virtual Path setting.

By default, IIS 7 does not have ASP.NET enabled on Windows Vista. So you can run basic static HTML websites on the the local IIS server but that's about it.

If you try to run an ASP.NET application without doing this, you will probably see a message like this: