We've been seeing some issues where VS 2008 crashes when creating a new WPF project. The underlying issue is that on certain machine configurations, the .Net Framework is not updating correctly.
In order to short circuit diagnosing that you're in this state, one of my colleagues on the deployment team has written a tool that will tell you whether or not the .Net Framework is installed correctly or not.
If you are having issues, please take a look at this tool http://blogs.msdn.com/aaronru/archive/2007/11/29/net-framework-3-5-installation-validation-tool.aspx. It will tell you whether or not your .Net Framework installation is correctly installed.
After that, have a look at this tool to collect log files: http://blogs.msdn.com/astebner/archive/2007/08/01/4172276.aspx
If you do have this issue, please contact the Cider team directly via our forum at: http://forums.microsoft.com/MSDN/ShowForum.aspx?ForumID=169&SiteID=1 or via my blog and have the results of the .Net Framework install check and log files ready.
Thank you and sorry for any inconveniences.