diff --git a/Setup2/Cosmos.iss b/Setup2/Cosmos.iss
index c1ecf78f9..c2c4ca3ba 100644
--- a/Setup2/Cosmos.iss
+++ b/Setup2/Cosmos.iss
@@ -186,10 +186,15 @@ Source: ".\Build\ISO\isolinux.*"; DestDir: "{app}\Build\ISO"
 Source: ".\Build\ISO\mboot.c32"; DestDir: "{app}\Build\ISO"
 
 ; Templates
+; Templates use the user dir and not global. Global requires devenve /setup (items) or /installvstemplates (project) which is VERY slow and kills during devkit
+
 ; Install files into VS Integrated Shell (which includes full Visual Studio)
-Source: ".\Build\VSIP\CosmosProject (C#).zip"; DestDir: "{code:VSNET2010_PATH}\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: Csharp2010_Installed('dummy')
-Source: ".\Build\VSIP\CosmosProject (F#).zip"; DestDir: "{code:VSNET2010_PATH}\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: Fsharp2010_Installed('dummy')
-Source: ".\Build\VSIP\CosmosProject (VB).zip"; DestDir: "{code:VSNET2010_PATH}\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: Vb2010_Installed('dummy')
+Source: ".\Build\VSIP\CosmosProject (C#).zip"; DestDir: "{userdocs}\Visual Studio 2010\Templates\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: Csharp2010_Installed('dummy')
+Source: ".\Build\VSIP\CosmosProject (F#).zip"; DestDir: "{userdocs}\Visual Studio 2010\Templates\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: Fsharp2010_Installed('dummy')
+Source: ".\Build\VSIP\CosmosProject (VB).zip"; DestDir: "{userdocs}\Visual Studio 2010\Templates\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: Vb2010_Installed('dummy')
+; X# File Item Template
+Source: ".\Build\VSIP\XSharpFileItem.zip"; DestDir: "{userdocs}\Visual Studio 2010\Templates\ItemTemplates\Visual C#\Cosmos"; DestName: "XSharpFileItem.zip"; Flags: ignoreversion uninsremovereadonly; Check: Csharp2010_Installed('dummy')
+
 ; Install templates into Shell
 Source: ".\Build\VSIP\Cosmos.zip"; DestDir: "{code:VSNET2010_PATH}\ProjectTemplates\Cosmos"; Flags: ignoreversion uninsremovereadonly; Check: IsCSharpExpress2010Installed('dummy') or IsVBExpress2010Installed('dummy')
 ; Install templates into C# Express
@@ -342,7 +347,7 @@ Filename: {code:VSNET2010_PATH}\VSIXInstaller.exe; Parameters: "/quiet ""{app}\B
 
 ; Forces VS to merge the resource metadata that describes menus, toolbars, and command groups from all VSPackages available.
 #if BuildConfiguration == "Devkit"
-	; /setup without nosetupvstemplates takes a LONG time... so we dont run it every time.. for DevKit users, they will need to run it one time first as user kit
+	; /setup without nosetupvstemplates takes a LONG time... so we dont run it every time.. for DevKit users, they will need to run it one time first as user kit - see new note above in X# template
 	Filename: {code:VSNET2010_PATH}\devenv.exe; Parameters: /setup /nosetupvstemplates; Flags: waituntilterminated
 #else 
 	Filename: {code:VSNET2010_PATH}\devenv.exe; Parameters: /setup; Flags: waituntilterminated
diff --git a/Setup2/ReadMe.txt b/Setup2/ReadMe.txt
index 5bdffa0a2..bc56bfab3 100644
--- a/Setup2/ReadMe.txt
+++ b/Setup2/ReadMe.txt
@@ -1 +1 @@
-Copyright © 2007-2010 The Cosmos Project
\ No newline at end of file
+Copyright © 2007-2012 The Cosmos Project
\ No newline at end of file
diff --git a/source2/Build/Cosmos.Build.Builder/CosmosTask.cs b/source2/Build/Cosmos.Build.Builder/CosmosTask.cs
index 6c8ef0948..1857f01fa 100644
--- a/source2/Build/Cosmos.Build.Builder/CosmosTask.cs
+++ b/source2/Build/Cosmos.Build.Builder/CosmosTask.cs
@@ -36,6 +36,7 @@ namespace Cosmos.Build.Builder {
       Copy("Cosmos.zip");
       Copy("CosmosProject (VB).zip");
       Copy("CosmosKernel (VB).zip");
+      Copy(mCosmosPath + @"\source2\VSIP\Cosmos.VS.XSharp\Template\XSharpFileItem.zip");
 
       Section("Creating Setup");
       if (!File.Exists(Paths.ProgFiles32 + @"\Inno Setup 5\ISCC.exe")) {
diff --git a/source2/VSIP/Cosmos.VS.XSharp/Template/XSharpFileItem.zip b/source2/VSIP/Cosmos.VS.XSharp/Template/XSharpFileItem.zip
index 695783b29..c2c94ebf2 100644
Binary files a/source2/VSIP/Cosmos.VS.XSharp/Template/XSharpFileItem.zip and b/source2/VSIP/Cosmos.VS.XSharp/Template/XSharpFileItem.zip differ