VS2005 Hangs when adding setup project to an existing solution

Question

I installed VS2005 from an MSDN subscription CD but because there appears to be an installer problem with the subscription CD I followed a technique posted on a Microsoft forum where you copy disk2 files over Disk1 files on your c: drive then execute setup.exe. This worked. But now the deployment problem: When adding a setup project to an existing solution VS2005 hangs. The initial split screen displays but that's it. There appears to be no CPU usage reported from the Task manager. Only that the solution is 'not responding'. It will stay there all day if I leave it. So I'm stumped. Has anyone encountered this and what was the solution? Thanks for your help.