Is it possible to share DFS root (not DFS subfolders individually) through WebDAV via IIS in case of IIS is not on DFS server, using NTLM authentication. Is there any Best-Practices? Should I share it as a website root (in this case I get problems with saving web.config file) or as a virtual directory (In this case I have no access to https://server.example.com/DFS through WebDav)?
New to IIS
I've been able to do it just fine in the past, the only problem I've run into, is the double hop (NTLM). I got around it simply by having my app pool actually login to the share instead of the the users themselves. Not the best solution but it worked for what i was using it for. if you need / want the users to do it, it will require setting up kerberos, at least to the best of my knowlege. It's not super hard, but at the same time, it's not easy at first. There's also potential issues with this working outside a firewall.
http://blogs.msdn.com/b/besidethepoint/archive/2010/05/09/double-hop-authentication-why-ntlm-fails-and-kerberos-works.aspx
Replace "SQL" in this example with your DFS (root file server).