Finally got it to work properly. Tried installing VS2005 yesterday,says it can't install MSXML, well duh, it’s already on the damnmachine. Whip out a fresh virtual machine now with Vista (thank god forVMWare). Order of installation as Rob Relyea's blog at Longhorn blogspoints out. Use the PDC Goods discs and follow this (however with atwist on point 3) order of installation:
  1. OS - Windows XP SP2 or Windows Vista Build 5219
  2. WinFx CTP installation - Disc 4, installs .NET 2.0, WPF and WCF
  3. VS2005 Beta 2 - Copied from disc 2 (Go down to VS2005/vs/wcu and re-install the MSXML6 parser manually first)
  4. WinFX SDK - Disc 5 Installs help documents and samples as well as XamlPad
  5. VS Extensions for WinFX - Disc 4. VS Project templates
Finally, was going slightly insane there for a while, the odd thing isthe MSXML part. A friend of mine had no problem whatsoever.