This error can occur for several reasons, but basically, IIS is not able to bind to the port or IP address specified in your settings, because another program or service is already using them.

When your computer boots or when you manually start the Microsoft Internet Information Server service, Event Viewer may log the following event:

   Event ID    : 115
   Source      : w3svc
   Description : The service could not bind instance X. 

I saw this post on the microsoft.public.inetserver.iis newsgroup and it may help in troubleshooting this issue.

Basically all websites that was starting are attempting to bind  SSL port 443. Solution is to remove 443 from properties for all sites that do not use SSL. This fixed my problem.

NOTE: "X" is a number that corresponds to one or more of your defined Web sites that are using Host Headers.

Event ID 115 Occurs When You Attempt to Connect to a Web Site by Using HTTPS (Q284984)
Attempt to Start a Web Service Fails with "IP Address Already in Use" Error Message (Q261194)
Event ID 115 When Using Host Headers With IIS (Q186810)

http://www.sysinternals.com/ntw2k/source/tcpview.shtml