Same problem was posted here: Only one instance works with Azure October 2012 SDK on IIS7.5
I ran into this with the same setup, tried everything logical to resolve, searched the web... nothing. I don't understand how this could be. Same project ran fine on an older version of Azure Emulator. Thanks MS.
UPDATE: I RESOLVED my issue following the suggested Registry hack here:
It appears that the issue is the emulators confusion selecting settings for VS2010 vs VS2012. In my case, I have both 2010 and 2012 installed, but it appears to affect you even with a clean install of 2012 only.
Microsoft.WindowsAzure.Common.Workarounds.TryGetVS2010SPVersion (name alone) looks like a hack, and it needed an additional reg hack to fix it. Again, thanks MS. :)
Anyone with this issue, please pile onto this connect bug for MS to fix: https://connect.microsoft.com/VisualStudio/feedback/details/773786/azure-sdk-1-8-binds-several-web-roles-to-the-same-port-on-local-emulator