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Error: 'Automation server cannot create the project'

I recently purchased a copy of VB.NET Standard from CompUSA and installed it on my computer. I use Windows XP Home. When I try to create a new project, I get the error message: "Automation server cannot create the project." So far, I have not been able to create a project, nor have I've been able to find a solution. Can you help?
You should be able to create Windows Forms applications just fine. However, if you are trying to create a web service or ASP.NET application, those are not supported on XP Home.

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