Unable to open SQL CE 4 databases in VS 2010 SP1

Question

According to "The Gu", in VS 2010 SP1 (http://weblogs.asp.net/scottgu/archive/2011/01/11/vs-2010-sp1-and-sql-ce.aspx) I should be able to open SQL CE 4 databases.

However, when I try to do this I get the following error:

"The data provider required to connect to the local data file could not be found. The file be added to the project by the typed DataSet associated with the file will not be generated"

followed by the error:

"The operation could not be completed"

Note that this is for an ASP.NET MVC Project.