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
It's a very good idea. Here are some reasons for:
The only argument I know against is that there are a couple very rare edge cases where the Cassini built-in server doesn't exactly mimic IIS because you're using odd port numbers. I doubt you'll ever run into them, and using Cassini as the primary dev environment does not preclude developers from also having access to IIS on the machine. In fact, my preferred setup is Cassini first for most small work, then deploy to my local IIS for more in-depth testing before moving code back to the shared source repository.
[Edit]
Forgot about url re-writing. You do need IIS for that. And an example of a limitation of the built-in XP IIS is that you are limited to one site in XP (can have multiple applications, but that's a different thing).