"IIS 7.0 is included within the Windows Vista client release, and is now available with the home editions of the operating system (unlike IIS 5.1 which was only available with XP Professional). IIS 7.0 for server will ship later this year with Windows Longhorn Server, and will add a bunch of additional deployment features - including much richer hosting support, secure FTP support, and built-in web farm deployment support. "
(emphasis is mine)
I should have known this! Maybe I knew of this, but just forgot. Now where is the Vista dvd...
(I have Vista business installed, and it seems you don't need the Vista DVD. At least it didn't ask me for it.)
Control Panel -> Programs and Features -> Turn Windows features on or off -> Internet Information Services
Some more interesting reading:
Tip/Trick: Using IIS7 on Vista with VS 2005
Wordpress in Vista