Is the SSMS you are using to connect with 2008? If so, Microsoft has said that you will not be able to connect from SSMS 2008 to SSIS 2005 "by design" 🙁
its connection to SSIS 08 from SSMS 08.. This is the problem with one of our developers who is unable to connect, others don't have any problem... He has also re installed it twice to check if it was because of the installation..
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