How does IIS communicate with the database in web set up

Hi,

I have created a web set up file and have installed. How will IIS communicate with the database?

Should i include database while creating set up?

And another problem is when i type http://localhost/mysetupname I want that the home page which i have set as start page to load which is actually not happening. I get the whole directory when i type this in address bar of browser.

http://localhost/mysetupname