This chapter is from the book
Creating Web Projects in VS.NET
The Visual Studio .NET Web Project wizard doesn't work very well if you're not running as an administrator. I've found the easiest way to get a Web project started as a non-admin is to first create the virtual directory using the IIS admin tool from the computer management console [3] and then run the wizard and point it to the URL I just created. You can also add yourself to the VS Developers group, which grants you write access to \inetpub\wwwroot and seems to make the wizard a lot happier.