Cant connect to localhost
Visual Studio's web server is restricted to only servicing clients on the machine it is running on.
To do what you want to do there are a number of things you can do.


Get a full licensed copy of IIS. (Please stop laughing)
Get a version of Apache (might affect your server code and will take a while to setup)
Write yourself a 'proxy server'.  I think if you write a program to run on you PC that creates a socket that listens to port 8080 and forwards any messages on to the VS Web Server (use "C:\Program Files (x86)\Common Files\microsoft shared\DevServer\10.0\WebDev.WebServer40.EXE" /port:6666 /path:C:\WebServer\Root to start it on a fixed port) and forward any replies back to you client.