Tip #95: Did you know… That Web Application Projects and Class libraries are now available in Express edition?
Creating a Web Application Project was possible only in VS standard SKU and above in VS 2008.
But with VS 2008 SP1 we went ahead and added support for WAP and class libraries in Visual Web Developer Express edition SP1. You can now create WAPs by going to File –> New Project.
SDET, Visual Web Developer.