I immediately tried to reproduce a situation in IIS, where my target DNN-website isn't bound to the specific hostname as set in my VS2010-project.

The result: Whilst the website keeps working when connecting from my browser (using the same hostname), VS2010 now refuses to load my project for that DNN-installation.

So yes, you're correct in that the hostname must also exist in the hosts-file, but what I stated in my previous posts remains true as well. I'm also assuming Roy already added it in his hosts-file, since otherwise his website wouldn't be reachable at all and then he would've probably asked another question first, in another topic ;)

After I've added the website binding into the IIS setting, now the project can successfully created and loaded first time.

I guess that the  "Setting up your Module Development Environment" in the wiki didn't highlight this explicitly for IIS7.5 installation.

Kudos and many thanks to Kornelis that come out with solution for my problem.

Thanks to Chris also for keeping track of this issue and giving out solutions for me to try out.

You guys rocks!

Regards,
RoyMcAvoy