Выскакивает ошибка
HTTP Error 404: Unable to create Web project <project name>
Unable to create Web project 'WebApplication'. The file path '<file path>' does not correspond to the URL 'http//localhost/<project name>'. The two need to map to the same server location. HTTP Error 404: Object Not Found. For more information, see Unable to Locate Object on Web Server.
Visual Studio .NET is unable to locate an item on your Web server because the item has either been moved or renamed. To map a connection to the object, click the ellipses () button in the error message and browse to the object's location on your Web server. Selecting the item will repair the address to the object within your application.
Система Win 2003 соответственно IIS 6.0

Если создаю проект, на удаленном сервере с WIn2k и IIS 5.0 то все нормально.