I had same issue ( link https://superuser.com/questions/394223/iis-cannot-access-folder-for-website-hosting)

I hosted web api service in iis when i hosted i got internal server error i found solution here for that http://support.microsoft.com/kb/942055 i changed as per this doc. After that i got the error in like this

        Fiddler] The connection to 'localhost' failed. 
        Error: ConnectionRefused (0x274d). 
    System.Net.Sockets.SocketException No connection could be made because the target     machine actively refused it {ip address}

How to resolve this?

Solution?