Symptom
Using PROJECT in a box Personal Version with the Personal Web Server you get the message on login:
The underlying connection was closed: An unexpected error occurred on a receive.
Solution
Try replacing the url:
http://localhost:8080/piabws/piabws.asmx
with
http://127.0.0.1:8080/piabws/piabws.asmx
Further Solution
Edit the file c:\windows\system32\drivers\etc\hosts
If the line is present:
::1 localhost
…then comment it out.