This is likely old ground for some, but I thought I’d cover it again just in case. As you may know Visual Studio allows you to create a new web site on IIS. However, there are some minor steps that you need to complete before it will work appropriately.

Let’s walk through this.

1. Open Visual Studio .NET 2008
2. Go to File | Web Site…
3. Click the Browse… button to choose a Location
   
4. Click on the Local IIS button on the left
   You’ll notice the IIS 6 Metabase and IIS Configuration Compatibility need to be
   installed as well as ASP.NET. The next steps we’ll go through will enable this for
   you.
5. Go to Start | Control Panel and click on the
   Programs and Features applet
6. Click on the Turn Windows features on or off button on the left
7. From the Windows Features window, select the IIS Metabase
   and IIS 6 configuration compatibility option under IIS 6 Management
   Compatibility as well as ASP.NET under Application
   Development Features
   
8. Click OK and wait as Windows configures the service
   
9. Once Windows is done configuring IIS, it may ask you to restart. Click Restart
   Now.
   
10. After rebooting, you should be able to walk through steps 1-4 again and create a
    Web site with the Local IIS option.
    

This should be all you need to do to enable Local IIS integration with VS.NET 2008.