If you’ve seen VS crash while using the MVC RC in a Windows Azure Cloud Service project — check out the fix that is now available.
Jim just posted an update to his ASP.Net MVC on Windows Azure sample — which includes plugging in the sample ASP.Net Providers that run against the Windows Azure storage services. Note the workaround to an issue when running the sample hosted on Windows Azure.
Does ASP.Net MVC work on Windows Azure? Have a look at Jim’s post: http://blogs.msdn.com/jnak/archive/2008/10/28/asp-net-mvc-projects-running-on-windows-azure.aspx