If you're running Visual Studio 2005 (with SP1), Vista, and IIS 7, you might have problems using your IIS Server. I got a nasty message:
"You Must be a member of the administrator's group on the local computer to access IIS metabase ..." I found several sites with instructions, but they did not solve the problem, until I got to mvolo.com where he's addressing some other issues. However, steps 1, 2, and 3 solved my problem. If you run into the same error and can't use IIS 7 localhost, Turn on the windows features mentioned on his blog, and that should do the trick.