So, I finally figured this out, and the solution is...
***DISCLAIMER*** This works on my computer in my situation, I am not saying this is a reccomended solution for everyone. I do not know what this solution will do to your computer.
Click Start | Settings | Control Panel | Adminstrative Tools | .Net Configuration 1.1
Click the + next to runtime Security Policies | Code Groups and click on All_Code
On the right, click on Edit Code Group Properties
Put a check in the "Policy levels below this level will not be evaluated"
Click on the Permission Set tab and ensure that it is set to full trust
Click ok
Back on the left, click on the plus next to Machine + Code Groups and click on All_Code
On the right click on Add a Child Code Group
Give it a name and click next
Select "URL"
Type in http://localhost/* and click next
Select "FullTrust" and click next
Click finish
Kevon