To setup the NorthwindDatabase webservice do the following:
1. Copy the NorthwindDatabase folder under your c:\inetpub\wwwroot directory
2. Open the Management Console and locate the "Default Website" under "Internet Information Services"
3. Open the property page on the NorthwindDatabase by right clicking properties on the directory in the management console
4. Select the directory tab and click "Create" next to the application name.
5. Close the console
6. Open the solution file from the samples directory