I have a server with servermatrix and I'm looking at offering hosting services to some friends. The big thing in my mind is the security issues for my site that's hosted there - I don't really want people to be able to get into the database I'm running (it's in MS SQL) nor reading my source code. Is there ways of preventing people from writing a script that would be aimed at reading my scripts and thus, get my code and database details, etc? Thanks.

Run the two sites as different users in IIS and set your permissions accordingly.

I tried that out and it seems to work. Thanks.