VS2010 inconsistent menus?

It could be that I'm just rusty but digging through the options for a new web site in 2010, I ran across the following inconsistency. If I wanted to create a new "Dynamic Data Linq to SQL Web Site", I can click the helpful background Start Page and select "New Project" That results in the following menu I could hear my coworker's voice though saying he prefers to create them in IIS but there doesn't seem to be an option for that. Digging further, if one clicks File, New, Web Site... that results in this menu

Now that I see both pictures together, I suppose the difference is between Web Site and Web application. So, maybe a worthless blog post unless you're just n00bing it up like me.