Digital,
What you are trying to do is to develop a smart client application. Which will work both connected and non-connected mode. If this is what you are trying to do, then you need not setup the application to point to IIS for anything. Develop the application using simple VB.Net and then publish it to your web server or your network share. Then ask the sales people to install it from that location.With this apporach when ever they connect back to intranet, their application gets the latest updates and when they are not connected, they can continue to work as if they are working offline.
That is the cool thing about clickonce.
Hope this helps.
Thanks.
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