Here’s a screenshot of how it looks before I press the green “debug” button.

However, the project still attempts to start using the Windows Phone Emulator. It’s really bad.
Is this a problem you’ve encountered before? How can I solve it?
Edit 1 In my project file, I see something strange:
<PropertyGroup>
...
<OutputType>Library</OutputType>
...
</PropertyGroup>
Is it supposed to be like that for that given project?
Edit 2 It should probably be noted that one of the projects in the solution is in fact a Windows Phone 7 application.
I made a workaround. Unloading the Windows Phone 7 project from the solution temporarily as I work on the ASP .NET MVC site seems to work just fine.