Cannot create SharePoint workflow project in Visual Studios

I currently have SharePoint 2010 and Project Server 2010 in a hyper for testing. I am trying to create a Sequential Workflow through Visual Studios 2010, following this site (http://msdn.microsoft.com/en-us/library/ee767686.aspx) exactly. I'm keep hitting a "SharePoint Connection Error" when I'开发者_运维知识库m in the beginning steps of validating the URL when asked "What local site do you want to use for debugging?" I checked through Central Admin for the URL to be sure, made sure everything located on the local machine, but I keep getting this error.

Anyone else have this issue before or know what this issue could be?

A little late, but this worked for me http://sharethelearning.blogspot.com/2010/05/sharepoint-connection-error-in-visual.html