Blob container creation exception
My guess is that the container name you're using violates the naming rules. Check http://msdn.microsoft.com/en-us/library/dd135715.aspx.
I've got the same exception. The solution: change container names to lower case.
With exception:
CloudBlobContainer container = blobClient.GetContainerReference("Script");container.CreateIfNotExist();
Works fine:
CloudBlobContainer container = blobClient.GetContainerReference("script");container.CreateIfNotExist();
In my case, the emulator was out of date. After stopping the emulator and installing the latest SDK the problem went away.
You can get the latest SDK from here: https://azure.microsoft.com/en-us/downloads/