Error creating new MVC project

I have had a problem with VS2010 where when I tried to create a new MVC 4 Web Project I would get errors thrown where it could not successfully add references to the project.

    Failed to initialize Powershell host, for the entity framework and Jquery. The error: The following packages failed to install from ‘C:\Program Files\Microsoft ASP.NET\ASP.NET MVC 4\Packages’

    EntityFramework.5.0.0: Failed to initialize the Powershell host. If your powershell execution policy setting is set to AllSigned, open the package manager console to initialize the host first.

    jQuery.1.7.1.1: Failed to initialize the Powershell host. If your powershell execution policy setting is set to AllSigned, open the package manager console to initialize the host first.

To resolve the error,
Make sure Powershell 2.0 is installed on your machine
You can get the Windows Prowshell 2.0 from here:
http://www.microsoft.com/en-in/download/details.aspx?id=9864

If thIS does not resolve the issue try t o launch the PowerShell console with local Administrator rights and run the following command.

Set-ExecutionPolicy AllSigned

Make sure you restart Visual Studio!