This url has the full instructions on how to go about this. http://sharepoint-2010-world.blogspot.com/2011/02/install-sharepoint-foundation-2010-on.html
Will try this once I am done with Windows 7 upgrade on my desktop. Also this site is helpfull
http://mkdot.net/blogs/zzl/archive/2008/06/18/install-vs-2005-2008-extensions-for-sharepoint-on-windows-xp-vista-os.aspx