BizTalk Error: Project Creation Failed

Post from: http://blogs.msdn.com/kerreybpi/archive/2009/05/12/biztalk-error-project-creation-failed.aspx

SYMPTOMS

The error message appears on the status bar when you try to add a BizTalk 2009 project in Visual Studio 2008.
-----------------------------------------
Error Details: “Create BizTalk Project …. Project Creation Failed”

This problem may occur after you applied SP1 for VS.

RESOLUTION

Browse to the installation folder of BizTalk 2009, run setup.exe, and choose “Repair” button, after that, you will work out the issue.