Installing a custom project template with Visual Studio Installer project

Have you tried creating a custom installer class by following the instructions here:

http://msdn.microsoft.com/en-us/library/system.configuration.install.installer.aspx

Then during the Install method you could 'simply' create a folder in the Windows directory by using the variables of the Environment class.

I can't comment on whether or not adding the folder and icon there will solve your problem, but I'm pretty sure you could create the folder you want using this method.

Put your template in a shared network location.

Then In Tools/Options/Projects and Solutions/General/User project templates location, each developer should put the path to that folder, e.g. Z:/Visual Studio Templates/.

If you don't have a shared server you can use something like Dropbox to achieve the same effect.