We do ASP.NET Development using Visual Studio.
A discussion point we've just had is whether or not our developers should have IIS installed.
With the ASP.NET Development Server you can run your web apps without IIS. Once you're happy with everything you can then deploy it to a test server running IIS and then onto Live.
In my opinion, all developers should also have IIS installed on their own machines as that will eventually be the end platform for the application.
The arguments are basically if the developer should have as close to "live" an environment as possible, or if the developer should only have the tools they require and not be cluttered with other things.
None of this is missions critical and I'm sure everyone will have a differing opinion. I'm just interested to hear some of them!
Robin