http://stackoverflow.com/questions/629644/not-able-to-run-asp-net-web-app-using-development-server
Site describes a fix to ""Hosts""
Note: if editing hosts on Vista using Notepad, it requires you to run Notepad "as administrator". To do this, type "notepad" in the Vista "Start Search" run box, and when it displays Notepad in the menu list, right-click and select "Run as Adminstrator"