This is the problem I had to fix trying to debug my first Azure Application locally. And I found the solution in an article from 2005: Visual Studio doesn’t support redirected folders. It took a while, but the following article helped me at the end: http://social.msdn.microsoft.com/forums/en-US/Vsexpressinstall/thread/6d66b9ee-49b2-4a2e-b72c-cc04c0264983/ More about my experiences with Azure in upcoming blogs