Problem origin:

Installed a new Azure development platform using Win7, VS2010, SQL 2012 Express.  Installed latest Azure tools, and stopped .NET 4.5 installation midway...

Loaded the Azure project in VS, tried debugging. Debugger wouldn't attach.

Ran without debugger, browser loaded and ... 403.  WTF

Messed around with IIS settings and permission from Management console... didn't work.

Bang head on wall... look around some more... found this...

http://stackoverflow.com/questions/9472490/windows-azure-cant-start-locally

aspnet_regiis -I to the rescue...

Everything started working again :).