I recently upgraded from Visual Studio 2010 to the Visual Studio 2012 RC. The installer also installs IIS 8 Express which Visual Studio now uses as the default web server.>
After nothing worked, I was able to solve this by below steps:
• Did not select ‘WEB DAV PUBLISHING’ IIS settings, while installing IIS. • INETMGR - Default Website – Request Filtering – HTTP Verbs – PUT as True