There's was some confusion before VS2008 about how this tool worked and now that VS2008 is common place, there are more questions. So here's a couple a suggestions:
1) provide more a better overview about what the tool is editing and where more information about that part of the config file can be found.
2) make clear what the data requirements are. for example: where does the tool expect to find the default mdf file? What forms are acceptable, express, 2005, 2008?
3) providing better debugging guidance.
I'd be glad to add this info myself, but I'm still working out the answers to these questions.