I was getting the this error:
I tried re-installing vs.net 2008 for testers ( I already had vs.net Team Foundation 2008 installed) but I had error with the installer.
These are the errors in the Application Event Logs:
Error in Template (C:\Program Files\Microsoft Visual Studio 9.0\Common7\IDE\ItemTemplates\Web\VisualBasic\1033\AdoNetEntityDataModelVB_ASPNET.zip), file (ModelObjectItemVB_ASPNET.vstemplate). Invalid template element (TemplateID) value (Microsoft.Data.Entity.Design.VSTemplate.ModelObjectItemVB_ASPNET).
Finally I tried to re-install Visual Studio .NET 2008 SP1 and that fixed the problems with the test projects.
My setup was in this order:
1) VS.net 2008 Team Foundation Server
2) Vs.net 2008 SP1
3) Vs.net 2008 for Testers (Didn't work)
So I went back and Re-install SP1 and fixed all my vs.net issues.