Just a quick post.  I hit this on my machine today whilst writing a quick sample.  When creating a BizTalk Project I got Creating project ‘project name’… project creation failed in the VIsual Studio dialog bottom left of the screen.  Changing the reg key referenced by Guru/Vinay in the BizTalk CPR blog fixes it http://blogs.msdn.com/biztalkcrt/archive/2009/08/21/visual-studio-2008-fails-to-create-open-biztalk-projects.aspx 



"PossibleProjectExtensions"="csproj"   - Original VS install reg value. "PossibleProjectExtensions"="csproj;btproj" - Post Biztalk installation reg value