I recently upgraded from Visual Studio 2010 to the Visual Studio 2012 RC. The installer also installs IIS 8 Express which Visual Studio now uses as the default web server.>
In IIS 8.5/ Windows 2012R2, Nothing mentioned here worked for me. I don't know what is meant by Removing WebDAV but that didn't solve the issue for me.
What helped me is the below steps;
Now everything is working.