Unfortunately, I think the answer is this: this still cannot be done.
I wanted this myself, so I delved deeply into Process Monitor to find out if there was any key or file config that could control it. This key seems to be: HKCU \ Software \ Microsoft \ IISExpress \ CustomUserHome (REG_SZ). You can install this on your own path on your local drive, and IISExpress reads it fine.
Alas, Visual Studio is not using it correctly. I think this is a mistake. ProcMon shows Visual Studio (briefly) using the CustomUserHome entry, but then still goes and searches for the necessary configuration files in the% UserProfile% \ IISExpress \ config \ folder.
Thus, if you try to fix this patch (with the current current Visual Studio 2012 Update 2 update, at least), it may look like it is working, but actually it still uses the same% UserProfile% \ IISExpress \ config \folder. If you delete or move this folder, your project will not open at all.
If there is a way to tell Visual Studio that IISExpress to use a custom directory, I did not find it, but would be happy to be enlightened.
This blog post shows some kind of similar situation, affected by the same error: http://areaofinterest.wordpress.com/2012/11/13/vs2012-iisexpress-migration-of-domainuser-and-network-share- wtf /
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