I have just downloaded and installed IIS express and it all works well running it from the command line:
But how do i configure options for it, is there a standalone windows interface for it like IIS Manager or do you have do do everything manually in the config files? Or do you have to install webmatrix to configure it?
IIS Express is a lightweight version of IIS and it doesn't ship with the the admin UI tool like IIS Manager. You could install WebMatrix, but it only allows you to configure few settings (binding, default documents, SSL). The options you have today:
%userprofile%\documents\IISExpress\config\applicationhost.config
or your application's web.config and use intellisense to edit IIS configuration settings