Linking website to Silverlight

I am usign Windows 7 on a 64 bit computer. THIS IS ALL running local on my PC.... NOTE I have apache and IIS running on this computer. I have Port 80 defaulting to my apache apps.

All I am trying to do is a simple Hello World Example.

1. I installed Silverlight, opened Visual Studio and created a new Visual Studio application....I DIDNT KNOW WHAT option to choose...Host the Silverlight app in a new website OR NOT?
2. I then simply put a button on the form and saved.
3. I then created a folder in the wwwroot folder, I DONT KNOW WHAT FILES TO PASTE THERE, so i pasted a bunch including a random html file from another website?????
4. I then went to IIS and created a new website pointed to main folder in wwwroot...I SET THE PORT TO 2020 not 80
5. I then created a virtual directory in that new website and pointed to the folder inside the wwwroot folder....NOW I get all the files and the new folder with all the same files....

I am very confused here and could use a little help....all I want to do is open IE and navigate to the site and show the textbox. What am I doing wrong?

NOTE: I can run this inside Visual studio and it works...but I want to hit a website I set up on my computer.

Thanks

Start with a review of the IIS online help which explains virtual directories and how to add files to a web.