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Windows Azure VM and SQL for hosting websites?

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I have a couple of questions about how Azure VM's work.

Long story short we were going to rebuild our ageing IIS box that lives in our DMZ but looking at Azure on paper it seems we could just go for something like an "Extra Small" VM and paying for the SQL databases by size.

I have an Azure trial account so I'll be giving this a go but I'm trying to think how it handles hosting multiple websites?

I'm assuming from what I've read so far that you'd use a CNAME that points to the FQDN of the VM and then use host headers within IIS?

Basically I'm a little unclear how Azure handles issuing Public IP addresses i.e. does each of my Azure VMs really have its own unique public IP?


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