That is exactly what would happen if you don't have the virtual directory setup correctly in IIS. On my machine I have the solution at c:\_Projects\mojoportal and http://localhost/mojoportal maps to c:\_Projects\mojoportal\Web
I did that by right clicking the default web site and choosing new Virtual Directory entered mojoportal for the alias and browsed to the folder C:\_Projects\mojoportal\Web
Note that if you mapped it to the mojoportal folder that is incorrect. It must map to the Web folder.