Connection to SQL file *.MDF requires SQL Server 2005 to function properly.

PROBLEM DESCRIPTION
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Getting below error message while trying to add Data from SQL Express 2008 DB through Visual studio 2008

ERROR MESSAGES:
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Connection to SQL file *.MDF requires SQL Server 2005 to function properly.

Environment:
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64 bit SQL Server
64 bit OS
32 bit Visual studio

Reference Links
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http://blogs.msdn.com/sqlexpress/archive/2008/10/02/faq-error-creating-a-service-based-database-in-visual-studio-2008-sp1.aspx
http://support.microsoft.com/KB/957944

Resolution:
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Apply the hot fix mentioned in this KB http://support.microsoft.com/KB/957944