Is IISNode making NodeJS a blocking process?

Does the combination of IISNode with NodeJS turn nodejs into a blocking process since IIS itself is a blocking process in front of NodeJS?

"Blocking" in this context refers to I/O. IIS blocks for I/O (if your question is correct), but if IIS itself is not performing I/O then it won't block. You can test this out pretty easily if you already have a setup where node is running with IIS:

var fs = require("fs");
fs.readFile(__filename, function () {
    console.log("file read complete");
});
console.log("this will appear first if not blocking");

I expect this will work as expected (last line will appear first). I assume you are using IIS as a proxy for node so the processes should have nothing to do with each other and should both get CPU time.