After I modified few things, I tried to publish by choosing a folder from file system. It fails. But it compiles and runs fine. I then did the same thing on version 1.1, it publishes without any trouble at all.
When you have attempted to publish the web project, have a look at the output window. It will show you why publishing failed. A common cause is files that are referenced in your project but have been deleted externally from the file system.
