IIS7.5: “405 method not allowed” for “PUT” method

If you get the “405 method not allowed” for “PUT” method You have to disable the ISS webdav option:

In Windows 7
1. Click on "start"
2. clieck on "Control panel"
3. click on "Programs"
4. click on "Turn windows features on or off" and wait some seconds
5. Disable the option : "Internet Information Services" > "world wide web services" > "Common HTTP Feature"s > "webDAV publishing"
6. Click "ok"

Reference:
http://social.msdn.microsoft.com/Forums/en-US/windowsazure/thread/a22b9e60-8353-40c7-af3e-69a8f18240c1