Im currently hosting 1 website on my server, I need to host another but am not sure how, currently all my server stuff is in the c:\inetpub\wwwroot directory, and using IIS.Any idea on how to do this? Thanks

You'll need to configure host headers or add another IP-address to your server. See this guide for how to configure host headers: http://technet2.microsoft.com/windowsserver2008/en/library/0cf70cc4-ae4d-470b-992d-225dbff55e4f1033.mspx