a) install IIS server on the system where you want to host your website.
b) Copy your website to this system.You can share the website on the LAN.
c) open IIs services manager.this can be done in three ways:

·         Type Inetmgr in RUN

·         Open Control Panel > Administrative tools > Internet Information Services

·         Right click My Computer, click Manage and expand Internet Information Services

d) Right Click on default web sites and click on ADD.
e) Select Virtual Directory and Browse your Website.
f) give some Alias name to your website.
g) finish the wizard.
h) now in your Browser in the address bar type your systems(the one on which you made the website) local host name and the IP address.
i) and you are done!!!

To access from other computers on the lan

type in the browser

http://IPAddessofMachine/VirtualDirectory/

on Web App projects use ClickOnce Technology..

I followed your instructions with no luck, directory I'm using http://webdev/virtualdirectory but IE keeps telling me "page cannot be found"

also tried setting this up as a brand new website, with the IP address of the server hosting it, now i'm getting this;

Under Construction

The site you are trying to view does not currently have a default page. It may be in the process of being upgraded and configured.

Please try this site again later. If you still experience the problem, try contacting the Web site administrator.

If you are the Web site administrator and feel you have received this message in error, please see "Enabling and Disabling Dynamic Content" in IIS Help.

To access IIS Help

1. Click Start, and then click Run.
2. In the Open text box, type inetmgr. IIS Manager appears.
3. From the Help menu, click Help Topics.
4. Click Internet Information Services.