>Did you create the virtual directory? Is ASP.NET enabled in the second machine?

Yes, the virtual directory is created. In IIS, I have the exact same configuration on both PCs. Yes, ASP.NET is enabled in IIS because the Web site is working.

I think this is related as per the other thread. In the Visual Studio 2005 environment, under the File menu, I cannot see New Web site. It is as if all the Web related stuff in the interface is gone.