http/1.1 500 Internal Server Error

[Amar]

Hi,
I have the following configuration
Server - Windows 2003, IIS 6.0, .NET Framework v1.1.4322, .NET Remote
Debugging Components
My local machine - windows xp pro, .NET Framework v1.1.4322, Visual Studio
..NET 2003

I am trying to use my local machine to connect to the remote server and
create a new ASP.NET Web application. When i try saying File-New Project and
then put in a path like http://servername/applicationname, visual studio
gives me an error saying:
"The web server reported the following error when attempting to create or
open the webproject located at the following url:
http://servername/applicationname. 'HTTP/1.1 500 Internal Server Error'"

I have read through multiple forums, even on this forum and tried the
following:
1. Used aspnet_regiis -i
2. Regsvr32 c:\windows\microsoft.net\framework\v1.1.4322\aspne t_isapi.dll
3. restarted the machine
4. stopped and restarted IIS
5. Checked the version of .NET framework under which my website runs -
v1.1.4322 - which is correct

Please help!!
Thanks in advance