IIS 7.0

Install the Microsoft IIS 7 re-write module. It will add two files to the root of the Joomla installation: htaccess and web. config.

The files will not have extensions at the end of the file name.

In the root Joomla install there will be a file named web. config.txt, open this up and copy the contents from and including to .
Paste this into the web. config file generated by the re-write module, between and restart the IIS 7 service and check if the re-write module has both Joomla Rules imported.

In the Joomla backend you can switch on URL re-writing and see if it works!

Make sure you have fastCGI enabled to handle php.

This is what web. config should look like: