I have a requirement to run an ASP.NET application in a web browser that does not have an Internet connection. The OS will be Windows 2000 Professional. 

What are the system components I need?

All the same as with an internet connection.  Just set IIS to answer omn 127.0.0.1 and use "localhost" as the host/domain name.

Jeff

Is IIS installed by default in W2K? Do I have to configure it for the application? Is Cassini a better option? If yes, where do I get it from? How do I package it to make an install disk?

To check for installed IIS simply browse http://localhost on your computer.

If not installed then Use this link to install IIS ON W2K --- http://www.dmxzone.com/go?1736&LinkFile=install.html

That's it

I installed it. Now it asks me for a uid/pwd. What do I supply and where is it stored?

Go to iis manager , diable the integrated windows authenticaiton .. if you want to keep it .. username and password are

windws login credentials