Hi, I can't find the official Microsoft documentation but you are not able to develop for mobile devices using the express edition which is likely causing the failure.

There is a comparison chart mirrored here: http://ftp.anadolu.edu.tr/Microsoft/Visual_Studio_2008_Express_Edition_…… , if you scroll down to the 'Smart Devvice Development' section you'll see it is only professional and above.  This is not a Zebra restriction, it is a Microsoft restriction I'm afraid.