Windows Server 2008 (Web Server) Replication

We have a load balanced environment with x64 Windows Server 2008. What are some best practices to setting up replication across the web servers? Do I only want to replicate the web folders?

How about replicating IIS changes - or do I need to make IIS changes on every server?

I've never, ever set up replication, but I have worked with a web farm that used it before. Basically, I only know the basics about how it works, and am looking for any advice, guides, warnings, etc on setting this up.

If you'd like to offer any advice, I'll let you know how our environment is for now. We have 1 prod server up and the second is nearly ready to go. We are using a cloud system and all machines are VM's. I am in the process of setting up the domain controller now (as I need to have one for DFS). Any ideas on the best way to go about setting up replication? Should we just stick the prod server in from the start or set up using a test VM and our second server and then switch it up later? I do not want to risk overwriting our prod server.

Thanks!