IIS Express 8 - Cannot write configuration file

Question

I am trying to use IIS Express 8 for a MVC site in VS2012. I am getting the following error whenever I attempt to create the site:

Filename: \\?\\C:

Answer 1

I received the same error but in a different context. Opening a project (.csproj file) provided by another developer returned this error and failed to do anything:

Creating of the virtual directory http://localhost:58753/
failed with the error: Filename: \?\C:\Users\xxxxx\Documents\Clients\xxx\Gen II\xxx\,vs\config\applicationhost.config Error: Cannot write configuration file

I removed both Encryption and the R/O attribute from the directory containing the project files and applied to all subfolders and files. Visual Studio can now read the project.