Some days back it was brought to our attention that Web Deployment Projects (WDP) stop working after installing Visual Studio 2008 SDK… As you soon VS 2008 SDK is uninstalled then WDP again start working…
We narrowed down this issue to be due to “Isolated Shell Application” which come as part of VS 2008 SDK… The work around to get WDP working again is to go ahead remove the Shell package by deleting the registry key below:
If you would at anytime restore the Shell package functionality then it would be advisable to Export the registry key and save it somewhere (or repairing the VS 2008 SDK install should also do the same)…
If you have any concerns or issues please do not hesitate to write back to Vishal.Joshi@Microsoft.com
PS: Do note that although the WDP build reports failure with VS 2008 SDK installed the build is not really failing, it is just a reporting false failures, so it is not as severe as it sounds….