This is due to some assembly redirects that are added to the devenv.exe.config file by installing the GAX (Guidance Automation Extensions).
Here is the fix, and it's an easy one:
1) Navigate to: C:\Program Files\Microsoft Visual Studio 9.0\Common7\IDE in Windows Explorer
2) Load devenv.exe.config in your favorite text editor.
3) Find this string: "Microsoft.VisualStudio.TemplateWizardInterface"
4) Comment out the element so it looks like this:
5) Restart Visual Studio 2008. All fixed!