Installation Problem/Error Message [RESOLVED]

I'm having some trouble that I hope you all can help me with. We just got Visual Studio.NET here, and I've comleted the installation onto my PC. I opened it up, and wanted to create a new project. I went to Visual Basic Projects, and then ASP.Net Web Application. When doing this, I'm getting an error message that says:

"Visual Studio.Net has detected that the specified web server is not running ASP.Net version 1.1. You will be unable to run ASP.Net web applications or services."

I made sure that IIS is installed on my computer (I'm running XP Pro). Any suggestions on what else I need to do to get this working?

Thanks,
Josh

I had to do this on a Windows 2003 box this week and I've seen it recommended for xp pro, give it a try:
c:\windows\microsoft.net\framework\v1.1.4322\aspnet_regiis -i