***Disclaimer: This information applies to Visual Studio 2010 Beta 1 only.***
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Visual Studio look and monitors the following folders for pkgdef files:
%LocalAppData%\Microsoft\VisualStudio\10.0\Extensions
%VS10_Install_Dir%\Common7\IDE\Extensions
%VS10_Install_Dir%\Common7\IDE\CommonExtensions
These locations are defined in the %VS10_Install_Dir%\Common7\IDE\devenv.pkgdef file.
Every time that Visual Studio starts, it looks for pkgdef files in these folders and merges them in the registry automatically. The last thing that happens is a devenv / setup (if needed). All of this is being done behind the scenes and it is completely transparent to the user.
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