ASP.NET version 1.1

Ok, now read all about SOA stuff...it;s implementation time. I try to create a ASP.Net Web Service project...and what you get

Error:
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Microsoft Development Environment
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Visual Studio .NET has detected that the specified Web server is not running ASP.NET version 1.1. You will be unable to run ASP.NET Web applications or services.
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OK Help
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Googled for a fix:
aspnet_regiis.exe -i