Cannot create web app with visual studio 2003

[res]

I just installed Visual Studio on a new laptop and am getting the following
error whenever I attempt to open an existing application or create a new web
application:

"The Web server reported the following error when attempting to create
or open the Web project located at the following URL:
'http://localhost/WebApplication1', HTTP/1.1 500 Server Error'.

I am on windows xp professional sp 2, have installed .net framework
1.1.4322, IIS 5.1. I have done a repair but am still getting the same
error. I have checked all security settings in IIS, turned off the
firewall, actually uninstalled Norton security because it was unclear how to
turn it off, and tried everything I can think of. Any ideas of what I am
missing?

Thanks so much for your help, I had been hoping to get a lot of work done
this weekend but alas not to be.