The New Virtual Directory dialog box provides a way within Visual Web Developer for you to create a new Internet Information Services (IIS) virtual directory. A virtual directory is an IIS application that points to an arbitrary location where the files for the Web site are stored.
The virtual directory is created as an IIsWebDirectory administration object in the Default Web Site of the IIS server. For more information, see Metabase Structure in the IIS SDK.
Enter the name that IIS will use as the name of your Web site (IIS application). If the name contains spaces, the URL for the Web site will need to include escaped space characters (%20).
Specify the location of the files for the Web site. The path can be to a folder on your local computer or to any folder available on your local area network. The location you specify must be accessible to the ASP.NET process when the Web site runs.