My suggestions.
"When you display file1.html, it can displayed by broswer directly"--this is incorrect, because he said "http://localhost..." means he open this page throught IIS.
1. start->run->services.msc. then start "server" , "WWW publishing" services
2. start->run->cmd. then "net start w3svc"
those are making sure your IIS is opening. Good luck