And I get one of these these errors:

"The system cannot find the path specified." or

"Cannot connect to device 0x80070003" or

The Smart Device Smartphone Package ({CC199C95-8D28-4A1D-B4BC-760E4E4CEE5B}) did not load because of previous errors. For assistance, contact the package vendor. To attempt to load this package again, type 'devenv /resetskippkgs' at the command prompt.The Smart Device Pocket PC Package ({FD2CE8C9-6B0F-44C1-BE80-9CCB59B26EE3}) did not load because of previous errors. For assistance, contact the package vendor. To attempt to load this package again, type 'devenv /resetskippkgs' at the command prompt.

The most likely cause of this are DataStore Entries left behind that don't get removed as part of un-installation. Do Make sure you back these up before you do this. There could be other reasons for these failure that may need more investigation but so far the resolution below has helped.

Close Visual Studio 2005 if it is running.

open "%USERPROFILE%\local settings\application data\Microsoft\CoreCon\1.0

Remove all the files in this folder.

Restart VS and try to create a device project. If bad datastore was the issue, your problem will be fixed.

This procedure is only applicable for machine on which a previous version of VS 2005 (beta1 or ctp) was already installed.

Thanks

Amit