In the course of IIS7 development, the team and I have answered an infinity of questions about IIS7 on any possible topic imaginable. Ironically, neither I nor anyone else I know on the team has ever answered the most basic question - what is the minimum set of steps necessary to get a website running with IIS7?
This post answers this exact question, and explains the key IIS7 concepts of sites, applications, and virtual directories (vdirs), which must be created before your IIS7 server can serve a single request. It also provides the steps necessary to create IIS7 sites, applications, and virtual directories, and options for configuring them.
Read more at http://mvolo.com/blogs/serverside/archive/2007/07/12/Creating-IIS7-sites_2C00_-applications_2C00_-and-virtual-directories.aspx.