How to deploy ASP.NET webservice to IIS 7?

How can I deploy an ASP.NET web service to IIS 7?

I have deployed my webservice to IIS-5 installed on windows server 2008. However, I am not well versed with configuration options in IIS-7.

For IIS-5 I followed the below steps.

1. Create new virtual directory in IIS
2. Open the Webservice in Visual Studio
3. Go to Build
4. Publish website
5. Publish to Local IIS
6. Choose the same virtual directory created in Step-1

What are the steps for IIS-7 as these steps are not working? I am getting error 404. I have tried setting the Default Document to .asmx.