There's no real problem with it unless you need something that the server can provide. I'm running XP Pro right now and IIS works just fine for me. When I'm done with a project, I upload it to the server and it works. However, if you do need the capabilities of a server, you may want to sign up for the .NET Server betas or just wait until the RTM version comes out.
I don't know whether it's just the light but I swear the database server gives me dirty looks everytime I wander past. -Chris Maunder Microsoft has reinvented the wheel, this time they made it round. -Peterchen on VS.NET