Well since DNS is resolving to the correct IP address, DNS is good. Now you'll simply have to make use of host headers in IIS.
More information can be found here.
To add a Web site using a host header identifier using the Web Site Creation Wizard
1. In IIS Manager, expand the local computer, right-click the Web Sites directory, point to New, and then click Web Site.
2. Click Next.
3. In the Description box, type the name you have selected for the Web site, and then click Next.
4. In the Enter the IP address to use for this Web site box, click the IP address used by all sites on the server.
5. In the TCP port this Web site should use box, type the port number used by all sites on the server.
6. In the Host Header for this Web site (Default:None) box, type the host header name to identify the Web site. The host header name must contain the full name of the site, for example, dev.something.root.com.
7. If SSL encryption is not enabled on the server, the SSL port box does not appear. If SSL encryption is enabled on the server, type the SSL port number, and then click Next. Note that you cannot use host headers with SSL encryption.
8. In the Path box, type or browse to the path of your Web site home directory.
9. To create a secured or private Web site, clear the Allow anonymous access to this Web site check box, and click Next. (Web sites are configured for anonymous access by default.)
10. In the Web Site Access Permissions box, set the permissions for the home directory.
11. Click Next, and then click Finish.