I'm setting up a new hosting environment (Windows Server 2008 Standard 64 bit VPS configuration, MySQL, IIS 7, CF 9)
Thank you in advance,
There's nothing wrong with that approach. You can run as many IIS sites as you like against a single CF install.
As for installing CF on IIS 7, I recommend that you do the following: install CF 9 without connecting it to IIS, then installing the 9.0.1 upgrade and any hotfixes, then connecting CF to IIS using the web server configuration utility. This will keep you from having to install the IIS 6 compatibility layer that's needed with CF 9 but not with CF 9.0.1.
Dave Watts, CTO, Fig Leaf Software