Sorry for the massive delay. I had to re-do windows, and all dev stuff to re-create the issue.
The XML Dump is
<?xml version="1.0" encoding="utf-8"?>
<ApplicationInformation>
<ProductName>Microsoft® Visual Studio® 2010</ProductName>
<ProductVersion>10.0.40219.1</ProductVersion>
<CompanyName>Microsoft Corporation</CompanyName>
<CurrentCulture>en-US</CurrentCulture>
<StartupPath>C:\Program Files (x86)\Microsoft Visual Studio 10.0\Common7\IDE</StartupPath>
<ExecutablePath>C:\Program Files (x86)\Microsoft Visual Studio 10.0\Common7\IDE\devenv.exe</ExecutablePath>
<CommonAppDataPath>C:\ProgramData\Microsoft Corporation\Microsoft® Visual Studio® 2010\10.0.40219.1</CommonAppDataPath>
<OpenForms>
<FormInfo>
<Type>Telerik.VSX.WinControls.UI.ComboPopupForm</Type>
<Name />
<Caption />
</FormInfo>
<FormInfo>
<Type>DX_SmartTagEngine.SmartTagPopupMenu</Type>
<Name>PopupMenu</Name>
<Caption />
</FormInfo>
<FormInfo>
<Type>DX_SmartTagEngine.SmartTagPopupMenu</Type>
<Name>PopupMenu</Name>
<Caption />
</FormInfo>
<FormInfo>
<Type>DX_SmartTagEngine.SmartTagPopupMenu</Type>
<Name>PopupMenu</Name>
<Caption />
</FormInfo>
<FormInfo>
<Type>Telerik.VSX.WinControls.UI.ComboPopupForm</Type>
<Name />
<Caption />
</FormInfo>
<FormInfo>
<Type>CR_CodeIssueUI.CodeFixHint</Type>
<Name>CodeFixHint</Name>
<Caption />
</FormInfo>
<FormInfo>
<Type>CR_CodeIssueUI.CodeFixHint</Type>
<Name>CodeFixHint</Name>
<Caption />
</FormInfo>
<FormInfo>
<Type>DX_SmartTagEngine.SmartTagPopupMenu</Type>
<Name>PopupMenu</Name>
<Caption />
</FormInfo>
<FormInfo>
<Type>Telerik.VSX.WinControls.UI.ComboPopupForm</Type>
<Name />
<Caption />
</FormInfo>
<FormInfo>
<Type>DSWAddIn.WizardStepsViewer</Type>
<Name>WizardStepsViewer</Name>
<Caption>WizardStepsViewer</Caption>
</FormInfo>
<FormInfo>
<Type>DSWAddIn.CustomerDALPicker</Type>
<Name>CustomerDALPicker</Name>
<Caption>CustomerDALPicker</Caption>
</FormInfo>
<FormInfo>
<Type>DSWAddIn.MDIParent</Type>
<Name>MDIParent</Name>
<Caption>Data Services Wizard | Select DAL and Output Project</Caption>
</FormInfo>
</OpenForms>
</ApplicationInformation>
<EnvironmentInformation>
<CLRVersion>4.0.30319.431</CLRVersion>
<OSVersion>Microsoft Windows NT 6.1.7601 Service Pack 1</OSVersion>
<CurrentDirectory>C:\Program Files (x86)\Microsoft Visual Studio 10.0\Common7\IDE</CurrentDirectory>
<SystemDirectory>C:\Windows\system32</SystemDirectory>
</EnvironmentInformation>
<CurrentProcessInformation>
<AllocatedPhysicalMemoryAmount>670015488</AllocatedPhysicalMemoryAmount>
<AllocatedVirtualMemoryAmount>1956098048</AllocatedVirtualMemoryAmount>
<MaxAllocatedPhysicalMemoryAmount>804884480</MaxAllocatedPhysicalMemoryAmount>
<MaxAllocatedVirtualMemoryAmount>2018492416</MaxAllocatedVirtualMemoryAmount>
</CurrentProcessInformation>
<ExceptionInformation>
<Properties>
<ObjectPropertyInfo>
<Type>System.String</Type>
<Name>Message</Name>
<Value>Could not find a part of the path 'C:\Program Files (x86)\Telerik\'.</Value>
<Items />
</ObjectPropertyInfo>
<ObjectPropertyInfo>
<Type>System.Collections.IDictionary</Type>
<Name>Data</Name>
<Value>System.Collections.ListDictionaryInternal</Value>
<Items />
</ObjectPropertyInfo>
<ObjectPropertyInfo>
<Type>System.Exception</Type>
<Name>InnerException</Name>
<Value>NULL</Value>
<Items />
</ObjectPropertyInfo>
<ObjectPropertyInfo>
<Type>System.Reflection.MethodBase</Type>
<Name>TargetSite</Name>
<Value>Void WinIOError(Int32, System.String)</Value>
<Items />
</ObjectPropertyInfo>
<ObjectPropertyInfo>
<Type>System.String</Type>
<Name>StackTrace</Name>
<Value> at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
at System.IO.FileSystemEnumerableIterator`1.CommonInit()
at System.IO.FileSystemEnumerableIterator`1..ctor(String path, String originalUserPath, String searchPattern, SearchOption searchOption, SearchResultHandler`1 resultHandler)
at System.IO.Directory.GetDirectories(String path, String searchPattern)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikSLDirecory(Boolean fireException)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikThemes()
at Telerik.OpenAccess.DSW.Presenter.Presenters.DataServicePickerPresenter..ctor(IDataServicePickerView dataServicePickerView, IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IProviderCaller providerCaller, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.DataServicePicker..ctor(IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, WizardStepsHelper helper, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.CustomerDALPicker.<NavigateToNextScreen>b__7(DataServicePickerPresenterParameters dataServicePickerPresenterParameters)
at Telerik.OpenAccess.DSW.Presenter.Presenters.CustomerDALPickerPresenter.ValidateInputs(Action dalFilePathNotFoundAction, Action objectContextNotFoundAction, Action`1 modelChooserInitializationAction, Action`1 dataServicePickerInitializationAction, Action`1 exceptionHandling)</Value>
<Items />
</ObjectPropertyInfo>
<ObjectPropertyInfo>
<Type>System.String</Type>
<Name>HelpLink</Name>
<Value>NULL</Value>
<Items />
</ObjectPropertyInfo>
<ObjectPropertyInfo>
<Type>System.String</Type>
<Name>Source</Name>
<Value>mscorlib</Value>
<Items />
</ObjectPropertyInfo>
</Properties>
</ExceptionInformation>
<UserInformation />
<CustomInformation>
<Items>
<CustomItemInfo>
<Name>DSW Version</Name>
<Description>1.0.0.0</Description>
</CustomItemInfo>
<CustomItemInfo>
<Name>OA Version</Name>
<Description>2011.2.713.3</Description>
</CustomItemInfo>
<CustomItemInfo>
<Name>OA Install Path</Name>
<Description>D:\Program Files (x86)\Telerik\OpenAccess ORM\</Description>
</CustomItemInfo>
</Items>
</CustomInformation>
</ErrorReport>
And the error log is:
DataServicePicker - 20-Jul-2011 8:00:45 PM: Exception Message: 'Can not create Silverlight application.
To create Silverlight application with standard controls, You need to install Silverlight Toolkit and to create Silverlight application with telerik controls, You need to install Rad Controls for Silverlight', Type: 'Telerik.OpenAccess.DSW.Core.CustomExceptions.MissingSilverlightRequiredFilesException', Source: '', StackTrace: ''
CustomerDALPicker - 01-Aug-2011 3:40:53 PM: Exception Message: 'Could not find a part of the path 'C:\Program Files (x86)\Telerik\'.', Type: 'System.IO.DirectoryNotFoundException', Source: 'mscorlib', StackTrace: ' at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
at System.IO.FileSystemEnumerableIterator`1.CommonInit()
at System.IO.FileSystemEnumerableIterator`1..ctor(String path, String originalUserPath, String searchPattern, SearchOption searchOption, SearchResultHandler`1 resultHandler)
at System.IO.Directory.GetDirectories(String path, String searchPattern)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikSLDirecory(Boolean fireException)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikThemes()
at Telerik.OpenAccess.DSW.Presenter.Presenters.DataServicePickerPresenter..ctor(IDataServicePickerView dataServicePickerView, IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IProviderCaller providerCaller, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.DataServicePicker..ctor(IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, WizardStepsHelper helper, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.CustomerDALPicker.<NavigateToNextScreen>b__7(DataServicePickerPresenterParameters dataServicePickerPresenterParameters)
at Telerik.OpenAccess.DSW.Presenter.Presenters.CustomerDALPickerPresenter.ValidateInputs(Action dalFilePathNotFoundAction, Action objectContextNotFoundAction, Action`1 modelChooserInitializationAction, Action`1 dataServicePickerInitializationAction, Action`1 exceptionHandling)'
CustomerDALPicker - 01-Aug-2011 3:43:50 PM: Exception Message: 'Could not find a part of the path 'C:\Program Files (x86)\Telerik\'.', Type: 'System.IO.DirectoryNotFoundException', Source: 'mscorlib', StackTrace: ' at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
at System.IO.FileSystemEnumerableIterator`1.CommonInit()
at System.IO.FileSystemEnumerableIterator`1..ctor(String path, String originalUserPath, String searchPattern, SearchOption searchOption, SearchResultHandler`1 resultHandler)
at System.IO.Directory.GetDirectories(String path, String searchPattern)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikSLDirecory(Boolean fireException)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikThemes()
at Telerik.OpenAccess.DSW.Presenter.Presenters.DataServicePickerPresenter..ctor(IDataServicePickerView dataServicePickerView, IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IProviderCaller providerCaller, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.DataServicePicker..ctor(IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, WizardStepsHelper helper, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.CustomerDALPicker.<NavigateToNextScreen>b__7(DataServicePickerPresenterParameters dataServicePickerPresenterParameters)
at Telerik.OpenAccess.DSW.Presenter.Presenters.CustomerDALPickerPresenter.ValidateInputs(Action dalFilePathNotFoundAction, Action objectContextNotFoundAction, Action`1 modelChooserInitializationAction, Action`1 dataServicePickerInitializationAction, Action`1 exceptionHandling)'
CustomerDALPicker - 01-Aug-2011 3:44:02 PM: Exception Message: 'Could not find a part of the path 'C:\Program Files (x86)\Telerik\'.', Type: 'System.IO.DirectoryNotFoundException', Source: 'mscorlib', StackTrace: ' at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
at System.IO.FileSystemEnumerableIterator`1.CommonInit()
at System.IO.FileSystemEnumerableIterator`1..ctor(String path, String originalUserPath, String searchPattern, SearchOption searchOption, SearchResultHandler`1 resultHandler)
at System.IO.Directory.GetDirectories(String path, String searchPattern)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikSLDirecory(Boolean fireException)
at Telerik.OpenAccess.DSW.Core.ServicesRegisteration.CondimentServices.CondimentServiceHelper.GetTelerikThemes()
at Telerik.OpenAccess.DSW.Presenter.Presenters.DataServicePickerPresenter..ctor(IDataServicePickerView dataServicePickerView, IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IProviderCaller providerCaller, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.DataServicePicker..ctor(IDAL dalFactory, IVsObject destProject, IVsObject sourceProject, WizardStepsHelper helper, IAddin addin, IDomainModel domainModel, ICondimentServiceHelper serviceHelper, IIOManager ioManager, String separatedServiceProjectName)
at DSWAddIn.CustomerDALPicker.<NavigateToNextScreen>b__7(DataServicePickerPresenterParameters dataServicePickerPresenterParameters)
at Telerik.OpenAccess.DSW.Presenter.Presenters.CustomerDALPickerPresenter.ValidateInputs(Action dalFilePathNotFoundAction, Action objectContextNotFoundAction, Action`1 modelChooserInitializationAction, Action`1 dataServicePickerInitializationAction, Action`1 exceptionHandling)'
Note: There is an error regarding creation of a Silverlight application. I can create Silvertlight apps and I have the required SDKs installed (v3/v4). But this is a different issue.