A: 

It seems that your .vstemplate contains a "UseRANU" parameter for the VsTemplatePaths task, which is obviously invalid. Open the .vstemplate and remove that parameter.

Mauricio Scheffer
I don't find any .vstemplate file in my VSPackage project. I even searched for UseRANU using "Search content", still not able to locate the file. Can you help me out finding that file
sudarsanyes
the .vstemplate might be zipped.
Mauricio Scheffer
A: 

I was using a wrong MPF. There are two, one for VS2008 and another for VS2010. I changed the MPF and the problem never occurred. Thanks for your answers

sudarsanyes