Question : Is someone trying to hack my IIS7?

I recently setup IIS7 on a Server 2008 Hyper-V machine.  I also setup ftp.  I had a friend login to download some stuff so I started looking at the logs.  I found some logs where it looks like someone is trying to hack into my server.  Here are a few lines from the log:

#Software: Microsoft Internet Information Services 7.0
#Version: 1.0
#Date: 2009-11-18 12:57:33
#Fields: date time c-ip cs-username s-ip s-port cs-method cs-uri-stem sc-status sc-win32-status sc-substatus x-session x-fullpath
2009-11-18 12:57:33 118.121.64.226 - 192.168.11.24 21 ControlChannelOpened - - 0 0 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:33 118.121.64.226 - 192.168.11.24 21 USER admin 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:33 118.121.64.226 - 192.168.11.24 21 USER sysadmin 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:34 118.121.64.226 - 192.168.11.24 21 USER administrator 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:34 118.121.64.226 - 192.168.11.24 21 USER Administrator 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:34 118.121.64.226 - 192.168.11.24 21 USER Admin 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:35 118.121.64.226 - 192.168.11.24 21 USER adam 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:35 118.121.64.226 - 192.168.11.24 21 USER adriana 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:35 118.121.64.226 - 192.168.11.24 21 USER adrian 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:35 118.121.64.226 - 192.168.11.24 21 USER alex 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:36 118.121.64.226 - 192.168.11.24 21 USER alexander 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:36 118.121.64.226 - 192.168.11.24 21 USER noah 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:36 118.121.64.226 - 192.168.11.24 21 USER ryan 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:36 118.121.64.226 - 192.168.11.24 21 USER patrick 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:37 118.121.64.226 - 192.168.11.24 21 USER matt 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:37 118.121.64.226 - 192.168.11.24 21 USER matthew 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:37 118.121.64.226 - 192.168.11.24 21 USER george 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:37 118.121.64.226 - 192.168.11.24 21 USER aiden 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:38 118.121.64.226 - 192.168.11.24 21 USER andrew 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:38 118.121.64.226 - 192.168.11.24 21 USER dylan 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:38 118.121.64.226 - 192.168.11.24 21 USER connor 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:38 118.121.64.226 - 192.168.11.24 21 USER logan 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:39 118.121.64.226 - 192.168.11.24 21 USER barbara 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:39 118.121.64.226 - 192.168.11.24 21 USER brad 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:39 118.121.64.226 - 192.168.11.24 21 USER john 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:39 118.121.64.226 - 192.168.11.24 21 USER beatrice 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:40 118.121.64.226 - 192.168.11.24 21 USER amal 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -
2009-11-18 12:57:40 118.121.64.226 - 192.168.11.24 21 USER alber 530 11001 37 9fee5df2-9ac3-43b2-9fce-f883a0e1bea6 -

Question 1: Can someone tell me if in fact someone is trying to hack into my ftp server by looking at the logs?

Question 2: What are some importantant areas to check when it comes to security so I will know that my server is secure.

Answer : Is someone trying to hack my IIS7?

IIS 7.5 is fairly good. I comes with default with WIndows 2008R2 so that is what you have.

The sc-status = 530 tells you that they tried to login but the username / password combination are wrong. So they are not getting in. :)