Setup Issue - Getting Mutex could not be created

[Guest]

Environment:
Visual Studio 2005
IIS 5.1
..Net 2.0

After getting past the metabase access issue, now its throwing Mutex could
not be created

This is the first 2.0 aspx web site to be created on this box. Web directory
is located in LocalHost.

If it helps this is the stack trace:
[InvalidOperationException: Mutex could not be created.]
System.Web.Compilation.CompilationMutex..ctor(String name, String
comment) +3472929
System.Web.Compilation.CompilationLock..cctor() +158

[TypeInitializationException: The type initializer for
'System.Web.Compilation.CompilationLock' threw an exception.]
System.Web.Compilation.CompilationLock.GetLock(Boolean& gotLock) +32
System.Web.Compilation.BuildManager.EnsureTopLevelFilesCompiled() +114

[HttpException (0x80004005): The type initializer for
'System.Web.Compilation.CompilationLock' threw an exception.]
System.Web.HttpRuntime.FirstRequestInit(HttpContext context) +3435007
System.Web.HttpRuntime.EnsureFirstRequestInit(HttpContext context) +88
System.Web.HttpRuntime.ProcessRequestInternal(HttpWorkerRequest wr) +252