odujosh said:
This is a clean machine (meaning beta 2 hasn't touched it). I also have VS 2003, 2005, 2008. I am going for a full uninstall reinstall of 2008. Running of Windows XP.
Sorry to reply to an old thread, but this problem still exists.

I have Vista Ultimate and installed VS2008 Dev Edition.    I couldn't create any solution until I ran  a subinacl script and that fixed all but C++.  The subinacl fixed a different problem, but I feel it is probably related to this project creation failure.

Very frustrating.