VS-2008 cannot find localhost, how can I get it to find it again?

Question

I am using IIS 7.5 on Windows 7, Visual Studio 2008 and a MVC2 Web Application.

I previously built the web application on the built in server then swapped over to IIS, all was good.

I added SSL and port 443 into the bindings and since then have not been able to get VS to find localhost.

When I try to create a virtual directory through the VS properties I get the message that it cannot be creted because it cannot find localhost on the local computer.

All firewalls and Skype etc are off or disabled.

IIS actually runs the site fine in HTTP and HTTPS

Any ideas?