Hi Cory Isakson,
You can try the following :
1. In your project root folder, rename "Default.aspx" to something else, for example "Default1.aspx"
2. Restart the IIS.
3. Now you should be able to create a page "default" in the administrative part. You should also be able to manage this page and set it as a home page. We tried this using a Blank Project, SF3.2 SP1.
Let us know if your problems persist.
All the best,
the Telerik team