If you're using Vista and wondering how to install IIS 7.0, the answer is in the screenshot above. While XP allowed you to install IIS from an Add/Remove programs dialog box, Vista has these features hidden in Control Panel > Programs > Turn Windows features on and off. Clicking on this item pops up a dialog box which contains Internet Information Services.
You have to do a few more things if you're expecting IIS 7.0 to work with the current Visual Studio 2005. VS 2005 needs to be run as an administrator and it communicates with IIS in the 6.0 compatibility mode. I've found a few links here that help get IIS 7.0 working with Visual Studio.
Scott Guthrie: Tip/Trick: Using IIS7 on Vista with VS 2005
Fix problems with Visual Studio F5 debugging of ASP.NET applications on IIS7 Vista
Enabling ASP.NET 2.0 Debugging on Visual Studio 2005, IIS 7.0 and Vista
