ASP.NET maps the file name extension VSDISCO to an HTTP handler that scans the host directory and subdirectories for ASMX and DISCO files and returns a dynamically generated DISCO document. A client who requests a VSDISCO file gets back what appears to be a static DISCO document.
Note that VSDISCO files are disabled in the release version of ASP.NET. You can reenable them by uncommenting the line in the section of Machine.config that maps *.vsdisco to System.Web.Services.Discovery.DiscoveryRequestHandler and granting the ASPNET user account permission to read the IIS metabase. However, Microsoft is actively discouraging the use of VSDISCO files because they could represent a threat to Web server security.