Hi:
In VS2005, the recommended method for using the development server for solutions with WAP subprojects was to have only one virtual directory for the root project, and set the server to development server with a fixed port. Then set the same port for the WAP subprojects.
In VS2008, this setup fails. When the WAP subprojects load, they load a second copy of the development server, which throws an error. MS says this is "by design" and all the threads I have read recommend switching to running IIS with subprojects in VS2008.
However, I have found a solution that will work. Follow all the instructions per VS2005 regarding virtual directories. Only create one- which is the root project. Next set the root project to run IIS. Next set all the subprojects to run IIS. Then come back to the root project and set it to run on the development server. This sequence has to be followed. If you set the root project first to run on the development server, when you try to set the subprojects, VS will insist on creating virtual directories for the subprojects. Just follow the sequence of root to IIS, subprojects to IIS, then root set back to development server.
The development server will run, IIS will not. Hope this helps some others.
Best,
Bill