I am having some trouble setting up my vwd 2010 environment to run under my local iis 7.5 instead of iis express.
Whenever I go to the project properties and select
I ran into the same issue and decided to select "Use Custom Web Server", instead of "Use Local Web Server".
I set up my site in my local IIS 7 to be at "http://localhost:8080" (another app is already using port 80). Then, I just put that into the "Server URL" box.
She's working like a charm, huzzah.