TF30162: Task "UploadStructure" from Group "Classification" failed

When trying to create a new Team Project on TFS2010 from a client PC I got the following error

Event Description: TF30162: Task "UploadStructure" from Group "Classification" failed
Exception Type: Microsoft.TeamFoundation.Client.PcwException

Inner Exception Details:

Exception Message: TF205029: No catalog resource type exists with the following identifier: 41c8b6db-39ec-49db-9db8-0760e836bfbe. (type CatalogResourceTypeDoesNotExistException)

However if I did the create on the TFS console all was fine.

Turned out the problem was due to the caching done by Team Explorer in Visual Studio. Exiting the copy of VS2010 on the client and reloading it fixed the problem as the updated team process settings will cached locally.