Thanks for your reply Peter.
Under "Computer" in the virtual machine I see the folder under "Network Location 1"
Storage (\\S:\) (S)
In the IIS manager I can browse to "Network Drive (S) once I select a folder on drive S: the physical path just displays as S:\inetpub\wwwroot
I also tried like \\S:\inetpub\wwwroot but this does not work either.
I also tried to create a virtual hard disk linked to a physical hard disk which failed and returned an error.
"Virtual Server supports linking a virtual hard disk to a physical hard disk on the physical computer. This virtual hard disk can have multiple volumes. The virtual hard disk is created with the actual boot partition and partition map from the drive on the physical computer. All read and write requests are forwarded directly to the linked physical hard disk.
Linked disks are intended for converting a physical disk to a virtual hard disk. You cannot use a linked disk as a startup disk. Virtual machines will not be able to start with linked disks attached. If you turn on a virtual machine with a linked disk attached, the virtual machine will turn itself back off and write an event to the event log.
For more information about converting physical disks, see Copying a physical disk to a virtual hard disk.
Linking to a physical hard disk requires the following:
You must be an administrator or a member of the Administrators group to create or use a link to a physical hard disk.
The physical disk must be a basic disk; it cannot be a dynamic disk.
Unlike the other virtual hard disk types, which permit only the virtual machine to write to the specified virtual hard disk files, a virtual hard disk linked to a physical hard disk allows the guest operating system to directly modify the contents of the linked physical hard disk. This means that the guest operating system can overwrite the contents of the linked physical hard disk and can potentially corrupt the host operating system and other programs and data of the linked physical hard disk.
You cannot write to a linked physical hard disk that has 100 MB or less of available storage space. If you attempt to do so, you will receive an error message. Correct the problem by moving or deleting files on the physical drive to create more storage space."