If you have already installed a VS2005 on the computer, you might still have configuration files that are now invalid.
Try the following steps:
Look for DeviceSDKInstComp.dll(located at %ProgramFiles%\Microsoft Visual Studio
9.0\vc\vcpackages and try registering the DLL DeviceSDKInstComp.dll
Also look for the DLL DeviceSDKInstShim.dll (Run regsvr32 "%Program Files%\Microsoft Visual Studio 9.0\VC\vcpackages\DeviceSDKInstComp.dll" to register)