Running on my home Vista box, I decided to try and publish a quickie app to the local IIS7 instance and got:
Error: Unable to create the Web ‘http://localhost/’. The Web server does not appear to have the FrontPage server extensions installed.
As it turns out, this was a UAC thing – as long as I ran VS elevated, it published fine. A permissions error would have been a nicer (or at least more accurate) error than “not installed” 🙂
Just logging this here so I can find it later 🙂