The View is browser command has different behavior depending on how you opened the site. When you select File/Open/Website, type in
http://localhost/YouWeb. Then View in browser will use that. If you use File/OpenWebsite browsing to a folder on disk then View in browser will attempt to launch the built in server against that path. So as long as you open your site as a IIS localhost web it will do what you want.
You can verify how you opened your site by looking at the path in the root node in solution explorer. If it says c:\Project\ProjectName then it's a disk based web and VS will use it's built in server. If it says
http://localhost/ProjectName then it'll use IIS.
From the way you describe the behavior it sounds like you're opening the site as c:\Projects\ProjectName. Not only will this result in the behavior you described with "View in Browser" but could also result in inaccurate intellisense. VS will use whatever folder you open as the app root for the site. So in your case VS thinks c:\Projects\ProjectName is the app root instead of c:\Projects\ProjectName\files. That can cause VS to incorrectly handle intellisense, references, special folders such as ~/bin, ~/App_Code, ~/App_WebReferences, etc... The best thing you should do is open the site as
http://localhost/ProjectNameIf for any reason you really want to open the site using c:\Project\ProjectName\files instead of
http://localhost/ProjectName and you want to force it to use IIS always you can change the start options by right clicking on the root node of your website, selecting property pages, then Start Options. Change the Server Setting to Use custom server and supply the base url for your site, such as
http://localhost/ProjectName.
Hope this helps,
Brad