To create a virtual directory in IIS 7.0 or 7.5

1) From the Start menu, click Run, then type inetmgr to open the Internet Information Services (IIS) MMC snap-in.

2) In the left pane, expand the node with the computer's name, and then expand the Sites node.

3) Right-click Default Web Site, and then select Add Application to open the Add Application window.

4) In the window, type servicemodelsamples as the alias for the virtual directory that you are creating.

5) Create the following directory: %SystemDrive%\inetpub\wwwroot\servicemodelsamples

6) Set the physical path to %SystemDrive%\inetpub\wwwroot\servicemodelsamples.
Click OK. The Web application is now created.

To set additional virtual directory properties in IIS 7.0 or 7.5

7) Click the servicemodelsamples node. Along the bottom of the window, two views are listed. Select Features View if it isn’t already selected.

8) Double-click the entry for Directory Browsing.

9) In the Actions pane, select the Enable option. This enables you to access the directory of the directory by using Internet Explorer, which helps when debugging a service.

10) Finally, you must set the security properties of the servicemodelsamples folder to allow it to be accessed by others. See below for details.

To set security properties of the folder in IIS 7.0 or 7.5

11) Navigate to %SystemDrive%\inetpub\wwwroot\servicemodelsamples.

12) Right-click the servicemodelsamples folder and click Share or Share With.

13) Click the down arrow to the left of the Add button.

14) Select the Find entry. The Select Users or Groups window opens.

15) Click Advanced.

16) Click Locations. The Locations window is now open.

17) Select the entry for the computer being used. It is important to select the local computer and not an entry for any domains or networks that are listed. After you have selected the computer, click OK.

18) Click Find Now. This populates the search results with objects associated with the local computer.

19) Find the IIS_IUSRS entry in the Name (Relative Distinguished Name) column. Select that entry and click OK to close the search results window.

20) Click OK to close the Select Users or Groups window.

21) Click Share to persist the changes.

22) After the changes to enable sharing are complete, click Done to close the File Sharing window.