IIS Express unable to create the virtual directory

You should be able to accomplish this in one of two ways.

• You can remove the old project, or change its port using WebMatrix, which has an administration interface for IIS Express.
• You can also do it by hand, by modifying the applicationhost.config file directly. The file is located in the %userprofile%\documents\IISexpress\config folder. You can find the project configuration under the <system.applicationHost>/<sites> element.

UPDATE: WebMatrix has been discontinued and support has officially ended.

No software installation required. Simply follow the steps:

Right-click the project node in the solution explorer and select the option to edit the project (.csproj) file. Near the bottom of the file, find the following:

<iisurl></iisurl>

Edit this entry to add your virtual directory:

<iisurl>http://localhost:5000/</iisurl>