Story so far

I can its been a partial success with this thing evidently giving a run to most folks (the link below will tell you that).

I tried:
1) Make sure the "Distributed Transaction Coordinator" service is running (!)
2) reinstall IIS
3) run "aspnet_regiis.exe -i"
4) run "regsvr32 aspnet_isapi.dll"

Then I reinstalled dotnet Framework 1.1 - nogo.

On the other hand, this time I tried changing the localhost in the project name to http://conceptinc/test1 - where conceptinc is the name of the website under IIS. I got another message which said web server is still using ASP.net 1.0 where as latest is 1.1. It gave me an option to upgrade to 1.1 later or make this app 1.0 compatible. When I chose the latter, I got a message saying it was unable to create project files.

It's now 2:20am and it's good enough for a day. :)