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SDK Error: Build Failed.Compiler of the file type ‘*.xsd’ failed

So you got this error:
Build Failed.Compiler of the file type ‘*.xsd’ failed

or your BT project fails to be created in BizTalk and you see the following errors

Error in Template (c:\Program Files (x86)\Microsoft Visual Studio 9.0\Common7\IDE\ItemTemplates\VisualBasic\Workflow\1033\, file (StateMachineWorkflowCodeSeparation.vstemplate).  Unregistered ProjectType (VisualBasic).  This can be caused by an incorrect ProjectType or because the project type package is not installed.

One or more templates do not match any installed project packages.


This indicates the SDK of your BizTalk installation has corrupted, possibly while applying some patch. This can be corrected by repairing it from Add Remove Programs>>Selecting BizTalk Installation and repairing it.



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