[Steve Turner, Jan 8, 2007]
Modified Jan 23 - Issue resolved. It appears the DNS field for a web project must be unique, and is used by the virtualization to form the preview URL.
For the first web project I created, I used DNS name 'localhost'. I imported the sample Alfresco web app into this project.
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Second, It's not clear to me what exactly DNS Name is for in this context. Does it have to be a valid name for my machine, or can it be anything? Steve