We have a Windows Server Web Edition 2003 Web Farm.
What can we use that handle replication across the servers for:
Content & IIS Configuration (App Pools, Virtual Directories, etc...)
We will be moving to Windows 2008 in the near future, so I guess what options are there on Windows 2008 as well.
I'd look into Windows Distributed File System. It should be supported by both Windows Server 2003 & 2008.
Distributed File System (DFS) is good for content, especially if each server (or a number of servers) host a replica synced up with File Replication Service (FRS). So if you've got two servers, each has a complete replica, so one going down doesn't mean the site goes down.
If all servers in your 'cluster' will host a replica, the home directory in IIS can be configured to go against the local drive (e.g., D:). If you have more servers than replicas, then you should use the DFS mount point (\domainname\dfsmountpointname).