Installed the azure 1.5 SDK yesterday. When I tried to start my simple web role on my development fabric it was taking forever and would eventually end with the message: Windows Azure Tools: Unable to connect to dfService.
Apparently the path being used by the csrun.exe to save its state cannot contain spaces, so setting the environmental variable _CSRUN_STATE_DIRECTORY to a path without spaces solves the problem.
For the complete story: http://207.46.172.252/en-us/library/hh472165.aspx
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