I fear Linwood is right. I was pulling my hairs for two days as why it was not working for me. My scenario was identical (and not just similar) to his. I couldn't figure out why it was not working. After finding this post I simply deleted the Sharepoint site (which was set up on port 80 and stopped as his) and it worked like a charm. I think (not sure) it might a candidate for reporting as bug.
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