Denali side by side installation with SQL 2008 or SQL 2008 R2 corrupts BIDS

Today I’ve just installed a SQL Server Code Name Denali CTP1 as a named instance side by side with instance of SQL Server 2008 R2 to take a look on the new features of Denali

Everything worked fine, unless I started a BIDS and wanted to create a new SSIS project (or open existing one).

Once you try it, you will se a below message.

Corrupted Installation of BIDS cannot open project

The problem is that the CTP1 version of Denali still uses VS2008 shell as Business Intelligence Development studio. In future versions it will be replaced by the VS2010 shell. But now it uses the V2008 shell as SQL Server 2008 or 2008R2 and the Side by Side installation corrupts BIDS.

To correct this, you have to uninstall Denali, and reinstall SQL2008. Then you can install Denali without BIDS.

So to save you trouble, and you want to install Denali side by side with existing SQL 2008 or SQL 2008 R2 installation, you can install all the features of Denali, except the BIDS.