ASP.NET MVC3 does not appear as an option in VS2010 after installing it

I couldn't work out why the option to create an "ASP.NET MVC 3 Web Application" was not appearing in the list of templates when I clicked on File > New > Project... in Visual Studio 2010. Only "ASP.NET MVC 2 Web Application" was listed there.

Turns out there's a drop down to allow you to select your framework at the top of the file/new/project dialog and this was set to the .NET Framework 3.5. Because MVC3 needs .NET 4 it wasn't being listed. Changing the framework to ".NET Framework 4" solved the problem.

After doing that VS2010 will remember your last choice and default to ".NET Framework 4"...