A couple of customer pinged me recently that when they create a new Smart Device Native Project in VS 2008, the dialog comes and goes away and nothing really happens. On futher investigation it appears that installing IE8 Beta cause this.
I don’t have a work around to share at this point (other than un-installing IE8) but as soon as I have something additional to share, I’ll update this post with a workaround.
Jan 29, 2008 ** Verified that the Release Candidate of IE 8 does not cause any issues **
March 26th 2009 – Hmm not good. THis is back again, please give us some time to get this taken care of. Working with desktop C++ and IE Team to get a fix/workaround out asap.