I recently put together a VPC of the BizTalk 2006 RTM on Windows Server 2003. I followed the installation guide and I had no problems during the installation or configuration.
A few days later, during an impromptu sales demo I was asked to show how you would set up an orchestration to call a web service. I didn’t have a local web service so I fired up VS 2005 to create one – only to discover that I couldn’t find the Web Services project template. Why? Because it is only installed when you install the ‘Web Developer’ component of VS 2005; you are told to clear all checkboxes but C# in the installation guide (although to be fair, in the context verbiage above this instruction it does say you need to install C# at a minimum.)
So, if you need to develop web services and your installing BizTalk by following the single-machine Windows Server 2003 installation guide, make sure you check the ‘Web Developer’ component during the VS 2005 installation.
Also, try not to demo things that you haven’t run through previously
[Note that the same instructions appear in the Windows XP installation guide.]