win2k pro with iis making problem

hi friends,
i am having win2k pro as my os without iis. i want to use this machine for development of asp.net projects and want it to refer to the iis on my server's pc. The server has win2k server edition with iis 5.0. Both the development pc and the server pc has vs.net installed.
The problem is that whener i try to create new project of asp.net and give the location of the directory set for me on inetpub on server i get this message:

"The web was created successfully, but an error occured when trying to configure the application root for this web. Web projects may not operate correctly without application root. The returned error was: active directory services cannot find the web server. A possible cause for this error is an incompatibility between version of iis on client and the server. The usual cause for this error is creating web projects on a win2k or newer server from a winnt 4.0 client. You manually configure the application root using the ism"

when i press ok i get similar warning about cannot set permissions on bin folder.
so do i need to install iis on my pc or should my directory reside in wwwroot or what the error wants me to convey or what should me or my admin need to do?

i am new to asp.net and iis and dont know much about them. the error provided to me may be self explanatory but i dont know anything about iis, please let me know of any solution.

bye for now.

I don't know on this one, sorry. It sounds like you should review your installation of vs.NET maybe?

hi friends,

i could not get proper solution of the problem but right now what i am doing is tell the admin to make the directiory in which i am working, explicitly virtual one. This solves the problem and donot interfere any where. Though this one is not the proper solution but right now i am running with this, if anybody has any proper method just let me know.

bye