When you run VSCloudService.exe you may get following error
“”The Windows Azure SDK requires Internet Information Service 7.0 with ASP.Net Application Development components installed”
To resolve this error you need to and run your web platform exe and select Web Platform tab and customize the Web Server option with: ASP.Net, Default Document and CGI deployment types.
After completion of above Installation you may need to go to From the Start menu, choose Settings | Control Panel | Programs | Programs and Features, Click Turn “windows Features On or Off”, under Microsoft .Net Framework 3.5.1, select WCF HTTP Activation
Now you can Install Windows Azure SDK….