proxy vs local host

[PeterJ]

I created some web pages in Visual Studio 2003 in VB and sent them to another
fellow to be rolled up into an application. This was sent back to me and I
could not open the whole application. Now I can not even open the project I
created for my web pages. When I do either, I keep getting a messagebox
that says:

"Visual Studio could nor create or open the application because your
browser is configured to use a proxy server for the local server."

When I use the help button on the messagebox I get:

"Visual Basic and Visual C# Reference

Visual Studio .NET could not create the application <application>. Your
browser is configured to use a proxy server for the local server
The browser you are using is attempting to go through a proxy server to
access the local Web server. For a local Web server, the browser should
bypass the proxy server.

To configure proxy settings in Internet Explorer

In Internet Explorer, from the Tools menu choose Internet Options.
In the Connections tab, choose LAN Settings.
In the Local Area Network (LAN) Settings dialog box, check Bypass proxy
server for local addresses, and then click OK.
For related information, see "Understanding security zones" in Internet
Explorer Help"

I have gone into IE and clicked Bypass Proxy Server, and no change. No
amount of fiddling under LAN connections allows me to open a page.

Oddly, if I use windows explorer and click on a (page).aspx.vb file, Visual
Studio opens the code file, but still will not open the project, etc.

Any help would be appreciated.