I got it right & would like to share it as an answer. The problem was that I didn't install Visual Studio SP1. Though Platform Builder comes along with WinCE installation, it is a plug-in for Visual Studio 2008 SP1 only. I previously didn't understand this connectivity, hence made this mistake of not installing the Service Pack 1. The order of installation is,
- Visual Studio 2008 Professional
- Visual Studio SP1
- WinCE 7.0 Evaluation Version
Thanks!