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Application Pools - Why use them, how many is too many, does it make a difference?

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Last Modified: 2012-05-05
I'm just wanting some advice on Application Pools in IIS7.  

What is the reason to bother with running apps in different pools?  
Does this come at a performance cost?
Is there a maximum number of pools I should be using?
Why not just run each app in a separate pool?

Can you suggest a good resource for understanding them better?  

Ta
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