After I installed Visual Studio 2008 Extensions for SharePoint, and tried to deploy SharePoint Item receivers, I got the follwing error.
Interestingly, here is the list of things we need to make sure to correct the issue.
1. Make sure VseWSS Web Service is installed on IIS
2. This Service is configured to use Central Admin App Pool.
3. Make sure the Central Admin App Pool is configured to run under "Network Service" identity.
4. Make sure "Network User" is part of Administrators in AD.
5. DO NOT FORGET TO RESET IIS.
Hope this helps.