I posted this in the SQL Server forum, but haven't gotten much help yet.  I'm cross-posting it here in hopes that someone with more Visual Studio experience has encountered a related issue.

I'm running SQL Server 2008 SP1 on Windows Server 2003 SP2.  Under Local Security Settings, "System cryptography:  Use FIPS compliant algorithms for encryption, hashing, and signing" is enabled by the domain policy.  When I open Business Intelligence Design Studio (which is the Visual Studio 2008 shell) and create a new project from the Analysis Services template, I get the error, "This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms."  Disabling FIPS isn't an option.

I've been unable to find a solution or a workaround.  I'm wondering if there's someplace in Visual Studio to configure what encryption it's trying to use.