I've got Parallels 6 running VS2010 under Windows 7 on my Macbook Pro. I'm trying to run my .NET 4.0 MVC 3 web site (debug/release) using the VS default web server and I keep getting the following error: 'An error occurred loading a configuration file: Failed to start monitoring changes to path\to\web.config'. I saw this post here, but the solution does not apply (indeed it does not appear to be a fix for my particular problem) Any ideas?
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I just ran into this myself. It has to do with the way Parallels sets up sharing of documents between OSX and Windows. I don't know how to fix the problem itself, but an easy workaround is to move your projects directory outside the Documents folder. I created C:\Projects\ and everything runs fine from there. Hope this helps.

Timothy Strimple
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Well, this was my solution, even though there has to be a "real" solution "out there." – gangelo Jul 27 '11 at 01:14