"Installation stopped because the directory for template installation did not exist" Error
I ran into the "Installation stopped because the directory for template installation did not exist. Please run Visual Studio on this computer to create the template directories." error when trying to install the new Microsoft AJAX Control Toolkit Visual Studio templates.
It's a really irritating message because it doesn't really give you an idea of the problem's source. I found out that my workplace had changed the file server since I installed Visual Studio, and VS didn't know about it, so its paths were targeting the wrong server. This confused the template installer - It tried to reach the old server and couldn't find the target path...
The solution:
In Visual Studio, go to Tools-> Options..., select "Projects and Solutions" from the tree on the left and set all the locations there to the right ones.
Voilà,
Shay.