I'm running xpSP2 with VS2003, 2005 and now 2008 (well not quite!) and using remote IIS6 on Windows server 2003 for web development. I've been trying to convert a web application from 2005 to 2008, but VS2008 cannot seem to access the development share. The solution has a number of projects, which have converted successfully and load into the IDE. But when it comes to the web application I get the following error:

The project is already setup as a 2005 web application to use IIS remotely?
If I create a new web application on the share and it defaults to the local IIS, when I try and set it to the IIS Url

I get the same error and then the following error;

The network share is setup with fulltrust. I've tried running VS as adminstrator (my login is admin also). I think this may be a permissions problem but can't find anything to suggest a fix. All the development sites are configured via DNS using host headers in IIS and work like a charm in VS2003/2005.
Any ideas?
Thanks
Steve