I've installed, uninstalled it, and re-installed it 3 times. And on two different systems. Same result.
I can see in Add/remove programs both the "Update for Microsoft Visual Studio 2005 Team Edition for Software Developers - ENU (KB915364)" and "Microsoft Visual Studio 2005 Web Deployment Projects", so they're definately installed.
The other system was my vista install (with UAC disabled). Both had the exact same results. The vista install was virgin too, I installed it, then immediately ran the update and WAP installers.
What "process" are you referring to. There is no process, other than applying the Update and the WAP, as far as I can see.