Hi
The problem lies with generating the native images for System.Web.Mvc using ngen.
You have .NET 3.5SP1 (log file: MSI (s) (48:64) [12:54:28:107]: PROPERTY CHANGE: Adding NETFRAMEWORK35SP property. Its value is '#1'. Action ended 12:54:28: AppSearch. Return value 1. )
Also, it's not a VWD/VS issue. As long as the installer detects at least one supported version of VS, it will proceed to install templates for that version. If you look at the logs:
MSI (s) (48:64) [12:54:28:104]: PROPERTY CHANGE: Adding VISUALSTUDIO_SUPPORTED property. Its value is 'C:\Program Files\Microsoft Visual Studio 9.0\Common7\IDE\devenv.exe'.
If the installer detects a valid version of VWD, you'll see a similar entry to one above for VWDEXPRESS_SUPPORTED.
If there are problems with add-ins then you will see failures at the custom actions in the log file when devenv.exe is executed. There aren't any errors there.
Try restarting your ngen service (should be something like Microsoft .NET Framework NGEN v2.0.50727_X86). Also, take a look at the ngen log files to see whether it reports more detail on the errors. See the NGEN section for MVC on Phil's blog at http://haacked.com/archive/2009/03/05/troubleshooting-installers.aspx
Thanks,
Jacques