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I am following a tutorial for creating a Visual Studio Isolated Shell application. When I get to step number 4 I a dialog with the following text:

A problem was encountered creating the sub project 'VSShellStub1'. The template specified cannot be found. Please check that the full path is correct.

I've tried this on two separate machines with identical results. Both machines have the Visual Studio 2010 SDK and the Isolated redistributable installed. Has anyone seen/solved this problem?