I would like to create a few static subdomains like:
mycategory.mydomain.com
in a rather small website and would like it to point to the folder:
mydomain.com/mycategory
without showing such redirection in browser address bar.
What is an easiest way to achieve it? I can do it in either IIS settings, asp.net, C# code, etc
I guess there are better ways then creating a few separate Sites in IIS - one for each subdomain.
Setup multiple websites in IIS and assign a unique hostheader to each one of them (mycategory1.mydomain.com, mycategory2.mydomain.com, etc). Point each website to its destination folder.
More about hostheaders:
http://www.google.com/search?q=iis+host+headers
IIS 7 supports URL rewrite better than any previous versions, http://learn.iis.net/page.aspx/460/using-the-url-rewrite-module/
But there are also third party solution.
Like @adrianbanks suggested, serverfault.com is a better place to discuss such configuration only questions :)