Error message when you try to add a new form to a Visual C++ Smartphone project in Visual Studio 2005: "Object doesn't support this property or method"

Steps to reproduce the behavior

1. Prepare the test computer by installing Visual Studio 2005 and the Smartphone 2003 SDK.
2. In Visual Studio 2005, point to New on the File menu, and then click Project. The New Project dialog box appears.
3. Under Project Types, expand Visual C#, expand Smart Device, and then click Smartphone 2003.
4. Under Visual Studio installed templates, click Device Application (1.0).
5. Type DeviceApplication in the Name box, type Drive:\Path\YourProjectLocation in the Location box, click to select the Create directory for solution check box, and then click OK.
6. In File menu, click New, and then click Project.
7. Under Project Types, expand Visual C++, and then click Smart Device.
8. Under Templates, click Win 32 Smart Device Project, type ProjectName in the Name box, and then click OK.
9. In the Win32 Smart Device Project Wizard, click Finish.
10. Press CTRL-SHIFT-A to open the Add New Item dialog box.
11. Click the Windows Form template, type FormName in the Name box, and then click Add.
    
    You receive the error message that is mentioned in the "Symptoms" section.