I have vps with windows 2008 r2 standard . I have one static IP for server . I want to host multiple websites on my vps . but I am confused to use dns server or pointing domains to that IP and bind host names in iis7 only to each domain associated . and what is the best using dns server or using domain free dns server and pointing only to ip address.
Use Host Headers to serve multiple domains from single static ip within IIS7: http://technet.microsoft.com/en-us/library/cc753195(WS.10).aspx
Consider using Zerigo for DNS, they are fantastic and its hassle free. (paid service)