UAC will cause you probs.
You will need to run IE as Admin.
I am running VS2005 R2 with no probs, as admin.
You don't need to run IE with admin privledges.
See:
http://blogs.msdn.com/virtual_pc_gu...ista-without-running-ie-as-administrator.aspx
To use the Virtual Server web site without running IE "as
administrator". There are two steps involved:
1. Explicitly grant your user account administrative privilege for
Virtual Server.
To do this select Server Properties from the Virtual Server section of
the navigation pane on the Virtual Server web site (you will need to
run IE "as administrator" in order to do this). Then select Virtual
Server security, Add entry, and create a new entry for your user
account with full control. You need to do this because the UAC
feature of Windows Vista stops Virtual Server from being able to
detect that you're a member of the administrators group, unless you're
running IE "as administrator".
2. Add the Virtual Server web site to your trusted websites.
To do this press the Alt key while running Internet Explorer, open the
Tools menu and select Internet Options. Then change to the Security
tab and select the Trusted sites icon. Click on the Sites button and
add the URL for your Virtual Server web site to the trusted sites.