Visual Studio error when creating Dynamics AX Reporting Project

Hi all and thanks in advance for any help you can provide.

In my DEV/TEST environment I have Visual Studio 2008 with the Dynamics AX Reporting Project template available. I want to create a new reporting project to place in the AX Report Libraries to call on an SSRS report I have created through BIDS. In VS I open the “New Project” window and select the AX Reporting template, name it and click “OK”. I then get this error:

“The project file could not be loaded. An error occurred while parsing EntityName. Line 16, position 39. C:\Documents and Settings[etc]…”

Nothing is created and I wind up on the VS Start Page. Any ideas on why I’m getting this error? I have searched Google like crazy to find something and have not found anything that seems to help.

Any help would be much appreciated.