Hi Bash,
Yep, I'm creating a new file system web. I try to add a new master page (R-click on project --> new item --> master page) and use default name. Click OK and the error described above appears.
Same thing (and method) when I try to add a webform.
I've been able to do both these things in the past. Nothing new on my machine and I haven't yet installed the final version in any way.
Strangely though if I try to add other items they will add. Here is the complete list of what I can and cannot add to a project:
Can add:
HTML page, Stylesheet, XML file, Assembly Resource File, JScript file, XSLT file, Class Diagram, Global Application Class, SQL Database, Site map, VBScript file, Skin file, Web Configuration File, Text File, Crystal Report, Report, Mobile Web Configuration File, Browser File
Can't add:
Webform, Generic Handler, Mobile Web form, Master Page, Web Service, Mobile Web User Control, Web User Control, Class, Dataset
Cheers,
Stu