You could try to manually set the include and lib paths of the VS environment under
Tools->Options->VC++ Directories
or something like that (it's been a while).
For verification, you can add the /showIncludes
parameter to the additional compiler options of the project, and /verbose:lib
to the additional linker options to double check that the correct headers/libraries are being used when compiling/linking the project.
IIRC there was some kind of incompatibility between one of the newer versions of the SDK (could have been version 7) and using VS2005, but I can't recall off hand what that was.