I got this error trying to debug in VS 2003 on a web project
error while trying to run project: unable to start debugging on the web server. the project is not configured to be debugged.
Basically, I had to go into IIS and add DEBUG to the allowed verbs for .asmx and .aspx files.
inetmgr
->
home directory tab
->
configuration button
->
choose asmx
choose 'all' or add DEBUG to the limit to: field.