Thanks for the reply. Here are my answers:
Question 1: Yes.
Question 2: Yes. Templates listed: Blank Feature, Delegate Control, Sequential Workflow, State Machine Workflow, Visual Web Part, Web Part.
Question 3: When attempting to navigate to \VisualStudioInstallationDirectory\Common7\IDE\ItemTemplates\Language\Locale\, I did not have an ItemTemplates folder.
I did experiment further and discovered that the Event Handler template may no longer be selectable because it can be accessed via the following:
1. Create a new WSPBuilder Project.
2. Right-click the project > Add > New Item.
3. Select WSPBuilder on the Left > Select Blank Feature on the Right > Give the blank feature a name > Add.
4. NOTICE the Event Handler check box. Check this box > Finish.
I did notice that the elements.xml file was not pre-populated with tags to hook up the event handler correctly. From some reseach, this used to be done, when the Event Handler template was available. So, I resorted to referencing the following
MSDN articles to learn more about putting together my elements.xml file:
So far, I've been able to build and deploy with WSP, but my actions (ItemAdded, ItemUpdated) are still not working. So, I'll have to continue working at it.