Issue with visual studio template & directory creation

Question

Hi all!

I'm trying to make a Visual Studio (2010) template (multi-project). Everything seems good, except that the projects are being created in a sub-directory of the solution. This is not the behavior I'm looking for.

The zip file contains:

Folder1
+-- Project1
    +-- Project1.vstemplate
+-- Project2
    +-- Project2.vstemplate
myapplication.vstemplate

Here's my root template:

<VSTemplate Version="3.0.0" Type="ProjectGroup" xmlns="http://schemas.microsoft.com/developer/vstemplate/2005"&gt;
    <TemplateData>
        <Name>My application</Name>
        <Description></Description>
        <Icon>Icon.ico</Icon>
        <ProjectType>CSharp</ProjectType>
  <RequiredFrameworkVersion>4.0</RequiredFrameworkVersion>
  <DefaultName>MyApplication</DefaultName>
  <CreateNewFolder>false</CreateNewFolder>
    </TemplateData>
    <TemplateContent>
        <ProjectCollection>
   <SolutionFolder Name="Folder1">
    <ProjectTemplateLink ProjectName="$safeprojectname$.Project1">Folder1\Project1\Project1.vstemplate</ProjectTemplateLink>
    <ProjectTemplateLink ProjectName="$safeprojectname$.Project2">Folder2\Project2\Project2.vstemplate</ProjectTemplateLink>
   </SolutionFolder>
        </ProjectCollection>
    </TemplateContent>
</VSTemplate>

And, when creating the solution using this template, I end up with directories like this:

Projects
+-- MyApplication1
    +-- MyApplication1 // I'd like to have NOT this directory
        +-- Folder1
            +-- Project1
            +-- Project2
    solution file

Any help?

EDIT:

It seems that modifying <CreateNewFolder>false</CreateNewFolder>, either to true or false, doesn't change anything.