I enabled IIS but I can't add connections to IIS 7 in windows 7 ultimate. Under File it just has "save connections" which is disabled/'greyed out' and exit.
Following picture is just to clarify:
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That feature is not available in Client SKUs out-of-the-box, however you can install Remote Administration for IIS Manager which will add that functionality to it. It is available at: http://www.iis.net/download/IISManager
After that you will have the ability to open connections, etc.