This task requires the application to have elevated permissions.

Problem:

I start my Visual Studio 2010, create new SharePoint project and after giving project name and clicking OK I get this error:

This task requires the application to have elevated permissions.

I already started VS2010 as administrator, but that's not the solution yet.

Solution:

I log to the server via Remote Desktop with my domain account. To be able to connect VS to SharePoint, my account needs to be added to local administrators group (get your admin/domain admin to do that).

Afterwards, I need to log out from Windows (thus ending my session) and log in again. Now, when I run Visual Studio as administrator, I can create new SharePoint project.