If you use Fiddler to monitor traffic to your web sites, you have probably found it useful for debugging issues like 404's or 403's etc. However if you want to have Fiddler show traffic from sites you are debugging through your local VS.NET web development server, then you need to add a '.' period after the word 'localhost' in the URL. Also make sure to add it prior to the designated port as displayed below.
After refreshing the page, you can see the output in Fiddler.