I have dicovered a work around for this problem

1/ Install the vsi of the starter kit.

2/ Unzip the start kit zip file to a new directory.

3/ Open the web site files in the new directory using Visual Studio 2010.

4/ Build and run the web site to make sure everything is ok.

5/ Select Export Template form the File menu.

You are then able to create a new web site using the template.