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Thanks for this walkthrough, it was very insightful and helpful. Unfortunately, I am unable to use sqlsrv-7.x-2.0-alpha2 for Drupal 7.37 because I get an error during install that the table Variable already exists. I had to wipe out the database, install sqlsrv-7.x-1.3 and run the install instead, which succeeded. This also means that the optimizations to settings.php that you provided above are not included either. Have you encountered this problem? Do you have any recommendations on how to solve it?

OS: Windows 8.1
Server: IIS8.5
PHP: 5.6.9 NTS x86

Also, as a side issue, during the installation pre-check on localhost:8080/install.php, I was receiving permission issues with Windows 8.1 when trying to install Drupal in c:\inetpub\wwwroot\drupal. I ended up moving Drupal to a different HDD and was able to get the install. Is it safe to do this or should I try to get Drupal back into the wwwroot folder?