Thank you Kris for your answer.
I followed the steps you indicated; on the Tamplate window, I don't see tabs. I see all 32 tamplates, and no tabs. the ADO.NET Entity Model does not appear
. I targeted .NET Framework 3.5 for the project. On the "About..." I see .NET Framework 3.5 SP1, Visual Studio 2008 Version 9.0.21022.8 RTM