New Virtual Directory Dialog Box
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.
Alias name
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).Folder
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.Create IIS application
Choose this option to have the folder that you select or create for the virtual directory to be recognized as an application in IIS.