Is it OK to have multiple aliases pointing to a web server?

Hi,  I'm a web developer so this is probably a stupid question.
We have a Windows 2008 server.  Currently we have 3 websites, each with their own domain name.  One of the website I have requested a new domain but the IT came back with an Alias/CNAME for the server and will point that new alias/cname to the server.  Would this work?  This server runs IIS 7/7.5 and has 3 websites with 3 domains already.  How would pointing an alias to a web server just work?  How would it know which website to point to or to land the users to?  Thanks.
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Not exactly sure if I understand your question, but couldn't you just use website binding (right click your sitename and choose "Edit Bindings"

lapuccaAuthor Commented:
I'm getting a new alias for an existing website.  This website lives in Win2008 server with 2 other websites.  IT wants to point this new alias to this website.  This is just how they work.  How do I configure for this alias to go to the correct website when there are 3 in this server and in the IIS?  
If this is an alias, do i also bind it?  Thanks.
Open the IIS manager
Rightclick the site which gets a new name
Choose "Edit Bindings"
In the dialog that pops up choose "Add"

In the Add Site Binding choose
Type: http
IP address: IP address of the server
Port:  80
Hostname: You're new alias

You could also add https, when you want to use that.

When the new alias points to the server, then you're site is accessable via the new alias.
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lapuccaAuthor Commented:
So, the original domain and the new alias would both point to the website, right?  What if I want to only use the new alias as the website's domain?  Do I simply just remove the binding for the original domain binding and add the new alias?  Thank you.
You are correct.

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lapuccaAuthor Commented:
Thank you.
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Windows Server 2008

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