When I try to debug a web site in .NET 1.0, I get the following error "Error while trying to run project: Unable to start debugging on the web server. Could not read key from registry"
I was not able to find any documentation on this particular error for not not being able to read the key from registry.
I did look at Microsoft KB For This, but, it does not have anything for the registry read error.
EDIT: I found a work around for this. Add the username that aspnet_wp.exe is running under to the Administartors group on your PC. This is a very bad thing because it exposes a security hole on your machine. But, it is still not clear what "other" rights does this account need in order to "read key from registry."
Consider running the RegMon from SysInternals. It should show your which registry keys get denied.