You can find the readme of VS2008 SP1 in the webpage below：
I list two WCF tools related items here.
2.3.7 Windows Communication Foundation (WCF) Tools
184.108.40.206 WCF Service Library project cannot be hosted by WCF Service Host when relative path is set to "Output Path" on the Properties page
When you create a WCF Service Library project, you can change the Output path from the default bin\debug\ to a relative path such as "." or ".." on the Build tab of the project Properties page. If you then try to debug the service, the service cannot be hosted by the WCF Service Host and this message is displayed: "A project with an Output Type of Class Library cannot be started directly."
To resolve this issue:
On the Build tab, input the fully qualified path instead of a relative path.
220.127.116.11 Error message when "Add New Item" is selected in a WCF Service Library project in Visual Studio with TFS plug-in
If you create a new WCF Service Library project in Visual Studio with the TFS plug-in, you may see an error displayed when you select Add New Item in this project. After clicking OK to close the error dialog box, the item service is added successfully and works as expected.
Click OK to dismiss the error dialog box.