im using asp.net 4 my final year project (connecting it to a SQL Server 2000 db) On my computer I have XP home so dont have IIS. I have to present my project however, dont really want to present it on the internet. Do I really need IIS???

Yes, if you want to let people view your web pages.

You may want to upgrade to Win XP Pro and install IIS.

Jan. 7-Can I run ASP on XP Home Edition? - 1/7/2002
http://www.coveryourasp.com/Snippet.asp?snip=48

ASP FAQS : Getting Started : Question: How can I install Personal Web Server (PWS) onto Windows XP Home edition? by Scott Mitchell - 1/10/2002
http://www.aspfaqs.com/aspfaqs/ShowFAQ.asp?FAQID=180

Or for a Web host if great price is what you're after you may want to look into www.best-machine.com where currently for $4.50/mo total you can set up 5 domains (i.e. separate Web sites).

And you could buy your domain(s) from a domain registrar such as www.godaddy.com.