If you are using .Net2.0, you can either create the project in File System, localhost (IIS) or FTP. But since you have already created the project in File System, you can now create a virtual Directory in IIS and link it to the physical project folder. You can then run the project from IIS and localhost

if u are using 2005 Then dont worry because you just have to press the F5
if u are using 2003 then you require first IIS server to be installed on machine