Newbie question - VS can't copy built outputs to the web

[Stezo]

I'm trying to run the FIRST sample program from the .Net
XML web services Step by Step book.

I get the following error when I try to build the
solution...

'Could not copy built outputs to the Web. Unable to add
folder '../Chapter02' to Web Project. Server
Error: '../Chapter02' does not refer to a page or folder
in this Web.

I look in the Windows explorer and in IIS and it seems
that there are 'Chapter02' folders showing in both. I set
the permissions in both IIS and Windows as wide open as I
could but it didn't help.

Any ideas? Thanks for your help.