For location, just open IIS, locate your website and in the right pane click explore.

Just to get your started down the right path, you never ever want to edit the web.config directly. You want to use a tool like SlowCheetah and transform your web.config, adding/removing what you need. If you edit it directly, it makes upgrading and deploying more difficult. Below I believe is the transform you are looking for.
<?xml version="1.0" encoding="utf-8"?>
<configuration xmlns:xdt="http://schemas.microsoft.com/XML-Document-Transform">
<system.webServer>
<httpErrors errorMode="Custom" existingResponse="Auto" xdt:Transform="Replace">
<remove statusCode="403" />
<remove statusCode="404" />
<remove statusCode="500" />
<error statusCode="500" responseMode="Redirect" path="/500.html" />
<error statusCode="403" responseMode="Redirect" path="/404.html" />
<error statusCode="404" responseMode="Redirect" path="/404.html" />
</httpErrors>
</system.webServer>
</configuration>