"visual studio .net has detected that the secified web server is not running asp.net version 1.1"

[hellstriangles]

This is driving me crazy. I am sure you have all heard this error
before.
I tried regiis -i and -r
and iis is running
the thing I dont understand is that everything was working. Then it
just stopped. I get the error when I open up a web project, but I can
still edit it and run it. If I browse to a page on localhost it works
fine. But I cannot create a new web project because of this error,
what is up with that?
I have vs.net 2003 with asp 1.1.4322 running windows xp.