We have an issue where the whole iis server is crashing. From my understanding when an application crashes (due to infinite loop or else) only that application pool is taken down.
In our sceanrio all Application Pools (we have more than 1) are stopped. We're still trying to pinpoint the cause but in you experience would a faulty app take down the whole IIS?
Any insights would help greatly.
Yes, it is possible, though unlikely, that a user mode process can even cause the entire machine to BSoD.
Since you are experiencing a problem where all app pools on the server are crashing and/or stopping, it might be logical to deduce that the error is occurring on an underlying component that is common to all app pools.
HTTP.sys is one such underlying component that is common to all app pools. HTTP.sys has its own logging mechanism that you need to enable:
http://technet.microsoft.com/en-us/library/cc784703(v=WS.10).aspx
I bet those logs could shed some light on the situation.