I'm working with the Boise .NET Developer User Group.  We're doing an MCAD certification study group, using the MS Press study guides as our primary reference material.

I looked at the ton of labs we’re going to be working during our study group. 

Then I thought about how cluttered my inetpub\wwwroot directory will become if I let VS.NET create the virtual directory for each lab assignment.

To help keep things in one place, I'll use this approach:
* I’ve created a folder called “C:\BlizVsNet11\NetDug\McadWeb”
* Inside this folder I’ll create folders for each chapter, such as “C:\BlizVsNet11\NetDug\McadWeb\CH02Labs”
* I’ll use Internet Services Manager (the IIS management console) to turn the chapter lab folder into a virtual directory.  (Most of the time I'll take the shortcut route here and right-click on the folder in Windows Explorer, Properties -> Web Sharing -> Share this folder.   One note: this route uses integrated security and does not allow anonymous access, which means I have to remember to use ISM for web services.)
In VS.NET, I’ll do the following
* First I’ll create an empty solution for the lab (File -> New -> Blank solution…).
* In the Name text box I type ch02labs
* In the Location text box I type “C:\BlizVsNet11\netdug\mcadweb”
* Once the solution has been created I add a web application project to it.  (Right click on solution name in the solution explorer, Add -> New project…)
* In the Location text box, I type http://localhost/ch02labs for the location.

By taking these steps everything (including the solution (.sln) file) is in one folder.  It takes just a bit longer at the start, but it helps me stay organized.