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I was trying to build a asp.net application but whenever I try to create a project for it, an error comes up saying that there isn't permission to create a web application in that directory. I'm not trying to create it on a network drive, just my C:\. Someone told me it had something to do with IIS ,and I only have Windows Xp Home Edition which doesn't come with IIS. Anyways my question is, Do you absolutely need IIS to utilize ASP.NET?
Not absolutely. There is a complicated way of doing it via code but the easiest solution would be to download asp web matrix which comes with a small web server that will work with asp.net.
I also heard there is a way to get iis installed on XP Home but you'll have to look around for the solution to that one.
You have to understand how these things work. ASP.NET is code that runs on the server. Your browser can only interpret html and javascript (more or less). This means that a web page with code has to go the web server, the web server knows by the extension of the web page (.aspx) that it needs to be processed by the relevent worker process before returning the response to your browser. So knowing that asp_net.exe is the process that deals with .aspx files it sends it to this. asp_net.exe interprets the code and renders it into html that a browser can understand sends it back to iis saying "here ye go mate, all done" and iis returns it to your browser. To proove the point look at the source of any .aspx page in a browser and you will only see proper html.
Your fancy server controls are now proper html tags, e.g. <asp:placeholder/> becomes a <div>, a <asp:datagrid> becomes a heavily formatted table and so on.
Thanks for the help!