>>
>>I'm not sure what to do at this point. My colleague who installed NET Framework right after me already uninstalled it. Would VS2008 still work with the previous version of the framework?
>>
>>I actually would love to be able to fix the problem rather than uninstall.
>
>I'm not sure what you're asking. Did you try downloading and installing the new version of the toolkit controls (and updating the assembly reference in your project)?

Paul,

When I try to create a new Web site Project I don't have many templates. Should I just use ASP.NET Web site? For some reason I don't even see ASP.NET AJAX enabled template.

What do you have?