Im doing some funky restful services and was setting it up on a laptop. BUT PUT requests werent working (always returning a 405 error - Method not allowed). The fix was to uninstall WebDav publishing as a feature of IIS. And then it worked straight away.
Some people were talking about Webdav is forcing you to make authorised requests for PUT but I was and it wasnt working. Simplest solution was to remove it as I didnt need it.