Load Balancer and Web farm

How does one set up a Load balances on Web Farm ? In an interview, I stated that in a scenario where web farm is there, the requests from the client would be first addressed by the load balancer before directed to one of the web servers. However, windows 2000 has an inbuilt load balancer as well. In that scenario, how this issue is to be tackled or addressed ? Any one with info please reply. Thanks.