Help: Cannot create any web application

I cannot open any web project even cannot create a new
one. The message for create a new web project is:
----------------------
The default web access mode for this project is set to file share, but the
project folder at "http://locahost/WebApplication1"cannot be opened with the
path 'd:\inetpub\wwwroot\WebApplication1'. The error returned was:
Unable to create Web project 'WebApplication1'/ The file path
'd:\inetpub\wwwroot\WebApplication1' does not correspond to the URL
http://locahost/WebApplication1. The two need to map to the same server
location. HTTP Error 500: Server Error
What would you like to do?
Retry using a different file share path
Try to open the project eith FrontPage Server Extensions

re: Help: Cannot create any web application

Do you have a C drive? Open IIS, right click on the local/ default site and check its properties. Also check the document tab. Report back so everyone can share the benefits of your findings. Thanks.