Internet Information Services(IIS) needs to be installed before starting this step. To install IIS go to add/remove programs in Control Center and click on add/remove windows components on the left hand side and check the IIS option and install.
Procedure
Open Windows explorer, Right click on "My computer" and select "Manage".
In the new window expand and select Services and Applications --> Internet Information Services --> Default Web Site.
Create a Virtual directory by right clicking on Default Web Site --> New --> Virtual Directory.
The virtual directory must be by name cognos10 pointing to the location c10_location/webcontent with read permissions.
A second virtual directory should be created within cognos10(right click on Cognos10 New-->Virtual Directory) as cgi-bin pointing to the location c10_location/cgi-bin with execute permissions.