I am running Windows XP Professional, Service Pack 2
One thought that might be causing a problem. I had Microsoft Visual Web Developer 2005 Express Edition installed on this same machine before I installed Visual Studio. We did not uninstall it before installing Visual Studio. Nothing else is causing a conflict that we are aware of and there are times that we still run Visual Web Developer. Like I said before, the tools are all installed in the Toolbox and seem to work, it is only when we try to debug or build that all of the errors pop up.
Here is the version info from Visual Studio:
Microsoft Visual Studio 2005
Version 8.0.50727.762 (SP.050727-7600)
Microsoft .NET Framework
Version 2.0.50727
Installed Edition: Professional
Microsoft Visual Basic 2005 77626-009-2519056-41287
Microsoft Visual Basic 2005
Microsoft Visual C# 2005 77626-009-2519056-41287
Microsoft Visual C# 2005
Microsoft Visual C++ 2005 77626-009-2519056-41287
Microsoft Visual C++ 2005
Microsoft Visual J# 2005 77626-009-2519056-41287
Microsoft Visual J# 2005
Microsoft Visual Web Developer 2005 77626-009-2519056-41287
Microsoft Visual Web Developer 2005
Microsoft Web Application Projects 2005 77626-009-2519056-41287
Microsoft Web Application Projects 2005
Version 8.0.60504.00
Crystal Reports AAC60-G0CSA4B-V7000AY
Crystal Reports for Visual Studio 2005
Microsoft Visual Web Developer 2005 Express Edition - ENU Service Pack 1 (KB926751)
This service pack is for Microsoft Visual Web Developer 2005 Express Edition - ENU.
If you later install a more recent service pack, this service pack will be uninstalled automatically.
For more information, visit
http://support.microsoft.com/kb/926751Security Update for Microsoft Visual Studio 2005 Professional Edition - ENU (KB925674)
This Security Update is for Microsoft Visual Studio 2005 Professional Edition - ENU. \n
If you later install a more recent service pack, this Security Update will be uninstalled automatically. \n
For more information, visit
http://support.microsoft.com/kb/925674Update for Microsoft Visual Studio 2005 Professional Edition - ENU (KB915364)
This Update is for Microsoft Visual Studio 2005 Professional Edition - ENU. \n
If you later install a more recent service pack, this Update will be uninstalled automatically. \n
For more information, visit
http://support.microsoft.com/kb/915364