Although using IIS is not that hard, I had some issues to get my website deployed. As I didn't install the webserver, it took me a while to find out which features were missing. The following steps can help you checking if your server is ASP.NET 3.5 ready:
Install the Web Server Role
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In Role Services, select ASP.NET and continue.
Install the .NET 3.5 Framework
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On your webserver, install the .NET 3.5 framework.
Publish Your Application
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In Visual Studio, publish your web project to a local folder, like on the desktop.
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Copy that folder to a local folder on the webserver, maybe somewhere like c:\apps.
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From the IIS Manager, right click your Default Web Site and "Add Application".
Enable ASP.NET Impersonation on your Website
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IIS -> Your website -> Authentication -> Enable ASP.NET Impersonation.
Test your Application
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Open a browser, and try http://localhost, verify that the IIS 7 page comes up and you know IIS 7 is installed correctly.
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Then test your application by browsing to http://localhost/your_application.
Troubleshooting
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If you receive .NET 3.5.0.0 reference errors or csc.exe not found, make sure you've installed the .NET 3.5 framework.
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If your web page does not display correctly, or images are missing, check all of your url links. For all of your url links, use an absolute path like "~/Images/".
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If you receive an error connecting to a local database, "Invalid login for NT AUTHORITY/NETWORK SERVICE"... open SQL Management Studio, add a new login, find the NETWORK SERVICE credential and grant that login db_owner permissions for your database(or use a dedicated user for your application pool).