IIS is all up now after the reboot Prakash issued. I am going to be checking to see what caused IIS to hang and not want to restart even at command prompt.
I checked logs and found it was Frontpage caused issue. Frontpage had locked the IIS metabase so it was unable to start. Also I found that its one user's site which caused this whole issue.
User has created domain with "www.hisdomain.com" but ''www" portion is automatically added by Hsphere on server side. And that was confusing IIS.
Hope no client will again create his domain with "www".