Darrell Norton commented on one of my recent posts, “Fritz Onion and others liked to use class libraries instead of ASP.NET projects. In the Whidbey version, I believe you will be able to run an ASP.NET project without IIS installed at all, so you will no longer need to create virtual directories.“

This, I must try.  If you use source control integration in Visual Studio .NET 2002 or 2003, be it VSS, ClearCase, PVCS, & etc, I encourage you to see if this works for you.  I discovered a link to the Fritz Onion method Darrell mentions on a page over at FlexWiki:

http://staff.develop.com/onion/Samples/aspdotnet_without_web_projects.htm.