this could be anything from permissions, the iis or .net setup
first try reinstalling asp.net
Open the Visual Studio command prompt.
type aspnet_regiis /?
this will give you the options
you can use
to list the installed versions (you should see entries here)
it will also tell you if you are running the correct version
create a standard web application thereafter and run the project.
make sure everything is working. Modify the source code a little bit and run it again to be sure.
Let me know of any errors if you receive them.