I think this is something that you have come across.
This has happened to me twice. I have installed VS 2012 which installs IIS 8 automatically on my machine. Then when I installed Webmatrix it installs IIS 7.5 and any of the programs are not working appropriately. In VS 2012, I can not run an MVC web project in localhost and I can not create a project in WebMatrix. Last time I did a system backup. So, I had to leave Webmatrix behind to save VS2012.
Then I installed IIS 7.5 again check the both things like this. But still the same problem exists.
I would like to know a precise answer to this problem and a solid answer to overcome this. Web Matrix is dependent on IIS7.5 and VS2012 is using IIS8. How can I use both the applications in the same machine.
Is it possible to run 2 IIS versions on the same machine?
But after installing IIS 7.5 my local host is working but not my VS nor Webmatrix.