How to install/configure IIS 7.x for TargetProcess
IIS is the most important prerequisite for TargetProcess as it is the only web server supported, and it’s not enabled by default.
The following instructions apply to IIS 7.5 on Windows 7, but the screen-shots and instructions for Windows Vista and Server 2008 would be quite similar.
To install IIS 7.5, go to Start → Control Panel → Programs → Turn Windows features on and off

Expand Internet Information Services and check all the boxes under Web Management Tools:

Then dig into World Wide Web Services. Pay special attention to Application Development Features — we’ll need everything from it. As for Common HTTP Features, check Default Document, HTTP Errors and Static Content:

Once you are there, also check HTTP Logging and Request Monitor under Health and Diagnostics. If you intend to use Active Directory, make sure Windows Authentication is selected under Security (this is optional).

We are done with checking the components. Click OK and give Windows a couple of minutes to install everything.
After that you’ll be able to open Internet Information Services (IIS) Manager from the Start Menu:

Now if you type http://localhost in your browser, you’ll see a nice welcome page

which means your IIS has been installed successfully and you can proceed with TargetProcess installation, assuming you already have MS SQL Server (Express) and .Net Framework 3.5 SP1 installed.