First open the IIS from Windows Server 2003 o/s, then click the DefaultWebSite, then click New , here you will see two options create "Web Site" and "Virtual Directory". Now if you create any setup project i.e. Web Setup Project, then while you install the msi you will see that the setup creates a Virtual Directory inside IIS and installs the asp.net website pages there. But i dont want setup project to create Virtual Directory in IIS, I want setup to create a Web Site and places asp.net website pages there. Please let me know, if you still have questions.