I am setting up my first IIS 7.5 server and have come unstuck. Is there a difference between the server logging options and site logging options.
I am assuming that the server logging options relate to creating a template for all sites to follow so that you don't have to go into the logging options pane on each site. Is this correct?
Correct.
The server-level options panel for the logging module allows you to set a default logging configuration for any new sites, as well as to re-apply it to existing sites with non-conforming configurations.
I'll also note that this kinda-inheritance of the server level logging settings is different from the "one log file per server/site" option dropdown, which is self explanatory.