Microsoft Domain-Specific Language (DSL) Tools help in creating and deploying the DSL within Visual Studio IDE. The VS IDE thus gets extended by providing a location for launching the DSL designer. The designer can then be used to create a graphical model based on the rules defined while creating the DSL.

My queries on VS Extensibility -
Can the DSL designer be invoked only from the templates section of any chosen "project types" folder in the Add New Project dialog box or Can I create a new folder in the Add New Project dialog box and deploy & invoke the DSL designer from there? If yes, please let me know the steps.

Try asking in the DSL forum: http://forums.microsoft.com/msdn/ShowForum.aspx?ForumID=61

Try asking in the DSL forum: http://forums.microsoft.com/msdn/ShowForum.aspx?ForumID=61