2.to use the template place the zip file in the
following folder for c# development -
My Documents\Visual Studio 2008\Templates\
ProjectTemplates\Visual C#\Web

if you use VB then zip in the following folder -
My Documents\Visual Studio 2008\Templates\
ProjectTemplates\Visual Basic\Web

3.then start Visual studio 2008/2010 and start a
new project selecting the above template.
make sure you placed the directory of project
into your dotnetnuke/desktopmodules folder,also
uncheck the option 'create directory for solution'.
for a detailed description follow the blog post -
http://cjh.am/cTOcaa

4.after creating the module development project,
change the build configuration to 'release' from
the project properties.then build/compile the project
and you will see two zip packages created in the
packages folder of your project directory.then go
to your local dnn site and click host->extensions.
from there click 'install extension wizard' and select
the above package to add the module to the local dnn
site.now you are ready to start developing your module
by testing and debugging.
follow the post for details - http://cjh.am/cTOcaa

before you compile the project by the above way,make
sure you installed MSBuild script first from here-
http://msbuildtasks.tigris.org