Unable to create web project

[Mary]

I am completely new to the Microsoft.Net. I was trying to create a
local copy of a project from the SourceSafe. In the "Create local
project from SourceSafe" window I selected the project from the
Sourcesafe and gave a directory name on my local drive.

In the "Set Project Location - ProjectName" window, I accepted the
default location which is http://localhost/ProjectName. Then I got an
error message "Unable to create Web project
'http://local/host/ProjectName'. The file path
'c:\inetpub\wwwroot\ProjectName' does not correspond to the URL
'http://localhost/ProjectName'. The two need to map to the same server
location. HTTP Error 404: Not Found"

All the projects under the solution except one is copied to the
directory specified directory.

Why am I getting this message and how can I avoid it.

Thank you.