Everything is fine there. I had others checked to but disabled them for trouble shooting purposes. Just a thought, I have several windows services disabled. Is it possible I have disabled a service that is required for this to operate properly?

No, since this is a service itself.
Restart the PC and go back to IIS console, let me know if you see there the default website.

It should look like that:

http://img89.imageshack.us/img89/1638/iisconsoleac6.gif

Also, let me know if the following folder exists:
C:\inetpub\wwwroot

Ok IIS looks the same. C:\inetpub\wwwroot does exist.

Ok.
Go to Start > Right-click on My Computer > Click on 'Computer Name' tab.
What is the Full Computer Name?

Open Internet Information Services, right-click on it's name (highlighted in my screenshot, posted above) and select Connect.
Enter your computer name > Click on OK

"DXXXXXX1" is the computer name. If I enter the name with out the . it says "Dependency service or group started" if i add the . it says I have been denided access to htis machine.

I checked the box for "connect as" and entered my user name and password for the PC but it made no difference.

Why do you have always bad luck in everything related to computers? :)

Open the registry editor. Start > Run > regedit
Do you see those 4 classes in registry:

[HKEY_CLASSES_ROOT\Interface\{B196B284-BAB4-101A-B69C-00AA00341D07}]
[HKEY_CLASSES_ROOT\Interface\{B196B285-BAB4-101A-B69C-00AA00341D07}]
[HKEY_CLASSES_ROOT\Interface\{B196B286-BAB4-101A-B69C-00AA00341D07}]
[HKEY_CLASSES_ROOT\Interface\{B196B287-BAB4-101A-B69C-00AA00341D07}]

They are one after the other ...
Use CTRL + F and search for B196B284-BAB4-101A-B69C-00AA00341D07 for example, orelse you might get crazy into those keys, there are millions like that.

Also, go to Services and see if you did not disabled by accident Terminal Services.

Terminal Services was disabled. I enabled it and started it. The 4 keys are in place.

Never had so many computer problems in my life lol.

Heh, don't worry, we will get it working. :)
So do you see now the Web sites folder, in IIS?

Please tell me the answer is YES. :)

I come bearing more bad news :$

No i do not see it.:( IIS looks exactly the same as my screen shot a few posts up.

I don't know what to say. I think I installed one million times this server and configure it secure.
I never had any problems.

Check to see if you have any of the following services disabled (if they are not there, you don't need them):
Event Log
IIS Admin Service
License Logging Service
MSDTC
Protected Storage
Remote Procedure Call (RPC) Service
Server
Windows NT Server or Windows NT Workstation
Windows NTLM Security Support Provider
Workstation
World Wide Web Publishing Service

Also, open Administrative Tools > Computer Management
Click on Event Viewer and look into those sections:
Application - any errors related to services there?
System - any errors related to services there?

I'm getting to a point where I exhaust all my answers to your IIS problem.
As a curiosity, why did you disabled Terminal Services? I hope you did not followed those crazy tutorials where they tell you how to "secure" your PC. In fact, they teach you how to break it.