A Visual Studio patch that fixes the Visual Studio F5 debugging of IIS7 applications on Windows Vista Home Premium and above has been released!
This patch solves the "An authentication error occurred while communicating with the web server. Please see Help for assistance.", and "Debugging failed because integrated Windows authentication is not enabled. Please see Help for assistance" errors, that until now had to be worked around using the instructions in my previous post on this matter.
For more information and download link, see my older post Fix problems with Visual Studio F5 debugging of ASP.NET applications on IIS7 Vista.