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Error: The ArcGIS Explorer SDK is not correctly installed - 'ESRI.ArcGISExplorer.targets' not found - (ArcGIS_E3SDK='')

Error Message

Building an ArcGIS Explorer Add-In project in Visual Studio 2008 results in the following error message in the Build Errors window in Visual Studio:

"The ArcGIS Explorer SDK is not correctly installed - 'ESRI.ArcGISExplorer.targets' not found - (ArcGIS_E3SDK='')".

Cause

The Visual Studio process does not correctly read the new environment variable set in the ArcGIS Explorer SDK installation.

Solution or Workaround

Reboot the machine after installing the ArcGIS Explorer SDK before attempting to build an Add-In project.