Error message "unable to open web site" with VS 2008 on Vista

I am trying to open a project in VS 2008 and my domain account it in the administrator group. I get this message:

"Unable to open the Web site 'http://locahost'. To access Web sites on thie local IIS Web server, you must run Visual Studio under an Administrator account in order to have access to the IIS metabase. Alternatively, instll FrontPage Server Extensions (FPSE) and then grant FPSE access to users who will run Visual Studio"

Any body know what I need to do to fix this problem. I have tried modifying the shortcut to run as administrator but shouldn't have to do that if I am an admin on my machine.

You might not have IIS setup properly on the local machine, I would verify your IIS configuration before continuing. You can always create a website or webapplication that runs through cassini instead and provide a folder path vs a IIS path.

P.S. Even if you are a machine administrator, with vista if the access restrictions are on you must still always specify that you wish to run the application under an administrator context.