Currently our dev team set up all the websites they\'re working on in IIS on their local machine. We\'re thinking of switching to using the built in ASP.NET development serv
There is nothing that the ASP.NET Dev WebService can do that IIS can't (You can set breakpoints etc, just attach the VS debugger to the ASP.NET runtime).
However, the ASP.NET Dev WebService does not represent a true production environment, and as such you can get caught by gotchas that you wouldn't expect when you deploy to production.
Because of that, I mandate that all development is done using IIS on a local machine. It doesn't take much work to configure a site in IIS.