Before using this template, you should configure your development environment. We've got a blog post about how to do that
Then read this latest blog post about customizing and using this custom template.
Installation is simple To use this template place the ZIP (not extracted) file in your
My Documents\Visual Studio 2008\Templates\ProjectTemplates\Visual C#\Web
folder. If you don't have the Web folder you can create it. Start up Visual Studio 2008 and create a new project, be sure to place the project directory into your DNN/desktopmodules folder and uncheck the create directory for solution option.
Read more: Codeplex