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>It is the same in VS 2005. And as I asked in my initial message, the folder created for the new project is the same as the Name of the project.
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>>However, I can only add a new project to a solution through the menu File/Add/New Project. I don't have a way to do this through the right click menu - something is wrong here...
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>If you right-mouse click on the solution you should be able to see Add -> Add Project. But this was not my questions.

That's the thing - I don't have this menu in the right click menu!

UPDATE. Once I added a new project to the solution through the menu, the right click menu appeared as well. But it was not there when there was only one project.

For your question - did you try altering Location in that dialog? I just did specify different location (not the same as name) in this box.