Hi,
    I'm trying create a new project of type
ASP.NET Web Application. I'm unable to open anything
I;m getting an error
"Visual studio .NET cannot create or open the application because no Web server was detected at this URL:'http://localhost/WebApplication1'. Make sure the web server is installed and running"

I've installed .NET SDK on Windows XP

Please can someone help me

Installing the SDK isn't enough. You must also install IIS. You can find this under Add/Remove programs --> Add/Remove Windows Components.