Thank you for posting your question.
We would recommend you to use the BlankProject approach. Login to your Client.Net account, choose the distribution that you want, and find the BlankProject zip file.
When you have it, just create a virtual directory (configured as application), and point it to the extracted files. Make sure that the Asp.Net worker process (usually yourcomputer\aspnet user account) has an access to the extracted files.
This should get you started.
the Telerik team