i've got an error too, it says, this template has tried to load an untrusted component 'Microsoft.xna.gamestudio, version 126.96.36.199
I've been able to get the kit to work with VS 2008 and XNA 3. These are the steps:
1. install the vsi
2. go to the ..\Documents\Visual Studio 2008\Templates\ProjectTemplates\Visual C#\XNA Game Studio 2.0 folder. There will be a zip file RolePlayingGameWindows.zip
3. Copy/extract the contents of the zip to some temporary folder
4. In each of the subfolders, edit the .vstemplate and the .csproj files with notepad.
4.1. For each of these files, search for XNA, and when you find it, see if there is a version 2 indicator (e.g., <Assembly>Microsoft.Xna.GameStudio, Version=188.8.131.52 ...), and replace the 2 with 3. Some files have multiple things you have to change.
4.2. Save the changes
5. In the RolePlayingGame\Content subfolder edit the Content.contentproj file in Notepad. Do the same thing as in step 4.
6. Make a new zip file with the same name (RolePlayingGameWindows.zip) and put all the content you unzipped (which includes the editted files) into this zip file. You now have a replacement zip for the file you copied in step 2.
7. Replace the file in step 2 with the file you made in step 6.
8. Start VS 2008, create a new project, and go back to the XNA Game Studio 2.0 node and choose the Role Playing Game starter kit. It should all work. It worked for me.
Thanks for the great starter kit!!