As we all know , there has been a problem with the Microsoft templates that ship with VS 2008 and VSSe.
But I found this great article By Sahil Malik , that has a fix.
Simply edit your project to add the two workflow types
open the .csproj with Notepad
At the Project\PropertyGroup element, append , see the sample file.
– At the Project element, right below <Import Project = “$MSBuild .. “, add the following element
<Import Project=”$(MSBuildExtensionsPath)\Microsoft\Windows Workflow Foundation\v3.5\Workflow.Targets” />
That worked for me.