One of my developers was getting the error below when trying to add a new item to an existing project.
He had 2 different SDKs on his machine so my first thought was that he didn’t have the correct one set. So I had him run the correct SetCurrentSDK.bat on his machine and try again. Still not working. We looked over the forums and found this, http://bbdevnetwork.com/content/error-when-adding-data-form-spec-visual-studio.
After he ran the SetCurrentSDK.bat he sent me the log and I found that some of the dlls being copied were denied. He ended up solving the issue by run the SetCurrentSDK.bat file as Administrator.