It looks like it's reading robots.txt OK, but your robots.txt then claims that http://bizup.cloudapp.net/robots.txt is also the URL of your XML sitemap, when it's really http://bizup.cloudapp.net/sitemap.xml. The error seems to come from Google trying to parse robots.txt as an XML sitemap. You need to change your robots.txt to
User-agent: *
Allow: /
Sitemap: http://bizup.cloudapp.net/sitemap.xml
EDIT
It actually goes a bit deeper than that, and Googlebot can't download any pages at all on your site. Here's the exception being returned when Googlebot requests either robots.txt or the homepage:
Cookieless Forms Authentication is not supported for this application.
Exception Details: System.Web.HttpException: Cookieless Forms Authentication
is not supported for this application.
[HttpException (0x80004005): Cookieless Forms Authentication is not supported for this application.]
AzureBright.MvcApplication.FormsAuthentication_OnAuthenticate(Object sender, FormsAuthenticationEventArgs args) in C:\Projectos\AzureBrightWebRole\Global.asax.cs:129
System.Web.Security.FormsAuthenticationModule.OnAuthenticate(FormsAuthenticationEventArgs e) +11336832
System.Web.Security.FormsAuthenticationModule.OnEnter(Object source, EventArgs eventArgs) +88
System.Web.SyncEventExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute() +80
System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously) +266
FormsAuthentication is trying to use cookieless mode because it recognises that Googlebot doesn't support cookies, but something in your FormsAuthentication_OnAuthenticate method is then throwing an exception because it doesn't want to accept cookieless authentication.
I think that the easiest way around that is to change the following in web.config, which stops FormsAuthentication from ever trying to use cookieless mode...
<authentication mode="Forms">
<forms cookieless="UseCookies" ...>
...