Connecting Visual Studio2010 to local Sharepoint

Just installed Sharepoint2007 and VS2010. Made an empty Sharepoint project, and opened the server tab in VS. I saw an option to make a Sharepoint connection. I tried to, but it gave an error, saying that a Sharepoint server is not installed on the machine. I can surf to Sharepoint's Central Admin, and all is well. Do I need to have a website running, beside Central Admin, to connect VS, or should VS connect to Sharepoint as I have it (just after an installation)?

From stackoverflow

• John is right, you do need SharePoint 2010. Check out this msdn thread:

  http://social.msdn.microsoft.com/Forums/en/sharepointdevelopmentprerelease/thread/da8de480-778b-4150-bd1b-c66bb75db042