OK, so I have both installed - including the optional .NET and ASP parts for IIS. But I have a problem.
- I go to "New Web Site"
- Location (Browse)
- Local IIS

All I get is a message saying:
"You must be a member of the Administrators group on the local computer to access the IIS metabase. Therefore, you cannot create or open an IIS Web site... blah blah"

I would love it if someone could tell me (in simple terms) what am I doing wrong (and how to fix it)? Do I need to install backwards compatibility for IIS6? Or is it something I have done wrong in configuring the IIS (I haven't really configured it at all). Please help me!

What you're doing wrong is you haven't used a local admin account.  This is Vista's new least priveleges security module, check the forums at www.iis.net for help on IIS 7 and the Vista beta support groups for help on security.

Jeff

I got the same error as you even though I definitely were among the local administrators. When Visual Studio 2005 was made IIS6 was Microsoft's latest web server. To make VS work seamlessly with IIS you have to enable IIS Metabase and IIS 6 configuration compatibility under Programs -> Windows Features. Jerry Orman had a blog about this issue.