IIS7, the configuration system stores configuration in a hierarchy of files, starting with 3 root configuration files, and descending into distributed web.config configuration files that can be present in any directory of your website to affect the configuration for the url namespace to which the directory corresponds. This hierarchy contains the following:
Framework\<version>\CONFIG\machine.config (the .NET framework machine.config file, where most .NET sections are declared)
Framework\<version>\CONFIG\web.config (the .NET framework root web.config file, where most ASP.NET sections are declared)
%windir%\system32\inetsrv\applicationHost.config (the IIS7 global web server configuration file, where all IIS7 configuration sections are declared)
delegated web.config files (the distributed configuration files that can be present in any virtual directory of your site or its subdirectory)
In this system, a configuration path has the following syntax:
MACHINE/WEBROOT/APPHOST/<SiteName>/<VirtualPath>
Where MACHINE, WEBROOT, and APPHOST correspond to the above configuration files, <SiteName> identifies the site, and <VirtualPath> identifies the virtual path. Note that the site is no longer identified by id, as before, and instead the site name is used (in IIS7, site name is the unique identifier of a site, unlike the ServerComment in IIS6 which was not unique).