How NLB will work with IIS-7 web services?

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http://serverfault.com – We'are going to join 2 (two) IIS7 web-servers into NLB with the same web-service published (2 instances of the same web-service one per web-server). Do I understand correctly, that NLB will work for my web-services, deligating web-requests to one or another instance? How will NLB work if one of web-service instance becomes unavailable (i.e. starts to throw SOAP exceptions or HTTP errors)? Will NLB take into account the average web-service response time to decide web-service instance to deligate processing? Thank you in advance! (HowTos)