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What do I need to do in Windows Server 2008 to restrict access to a website (or directory in the website) to only certain users?

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NTFS permissions will take precedence over the site/virtual directory's permissions if they're more restrictive:

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IIS can restrict websites to an IP address or range of addresses, this is useful for making a website visible to an entire office (eg, a development website restricted to your own, and your clients office IP ranges)

This isn't really authentication as such, but is often quicker and easier to setup, but it's less secure (IP's can be spoofed).

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up vote 0 down vote accepted

I enabled Basic Authentication and disabled Anonymous Authentication. I created a user with read and write permissions on the folder. The created user's credentials are what I use to view the website.

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