In preparation to installing Virtual Server, and acknowledging the fact that it needs IIS, I would like to know:
IIS stores the Virtual-to-FileSystem mapping inside of its configuration file, and whenever it receives a HTTP request for a URL in the Virtual namespace, IIS translates it to a resource in the FileSystem namespace using its configuration.
At this point, you can have any other mapping in effect in the FileSystem namespace (for example, NTFS junction points) to do further name mapping, but we are getting a bit more complicated now...
FYI: Virtual Server does not need IIS to administer/function. I use Virtual Server all the time without IIS. See this blog entry:http://blogs.msdn.com/david.wang/archive/2005/06/21/Virtual_Server_2005_Administration_on_IIS.aspx