Visual Studio RC fails on Vista Beta 1

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When trying to install the Release Candidate of Visual Studio (build 50727.26) on Windows Vista Beta 1, the installation will fail.

The .NET Framework on Windows Vista Beta 1 does not match the .NET Framework packaged with The Visual Studio Release Candidate which causes the failure.

The failure looks something like:

   Error 25007.Error occurred while initializing fusion. Setup could not load fusion with LoadLibraryShim(). Error: The handle is invalid.

The workaround is to install Visual Studio on a newer version of Windows Vista.