Internet Information Server
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If using Windows XP, a very good tool for IIS (5.0) administration is XP PRO IIS Admin (link). A better option would be to run IIS 7.5 Express. See below.
IIS 7 Manager (download link) is the administration tool.
Read an Overview (link).
IIS Express can be used in Visual Studio 2010 SP1 for debugging Web projects. It is as easy as right-clicking the web project in Visual Studio and selecting the option "Use IIS Express...". Read more in Scott Gu's post (link).
The default location used by IIS Express is "My Documents\IIS Express". This is IIS_USER_HOME.
The root location for web sites is in IIS Express installation directory. This is IIS_SITES_HOME.
WCF Services can be hosted in IIS. IIS 7 brings changes required to host WCF Services over additional protocols, beyond HTTP, like net.tcp, named pipes, MSMQ.