The readme for the new Visual Studio Express Beta…
Windows XP SP2 Issue: On a computer running Windows XP Service Pack 2 (SP2), the Web download will fail, as the firewall is enabled by default.
Workaround: Disable the firewall and check to make sure the Proxy settings are enabled. This can be checked by opening Internet Explorer. On the Tools menu, click Internet Options, and then click the Connections tab. Click LAN Settings. The Automatically Detect Settings check box should be checked. If it is not, check it and click OK. Then run Setup again."
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