SSIS the new connection manager could not be created

I faced an issue with SSIS connection manager not getting created. First I opened an existing SSIS project and it dint open in design view. It was giving me

The connection type "FILE" specified for connection manager is not recognized as a valid connection manager type. This error is returned when an attempt is made to create a connection manager for an unknown connection type. Check the spelling in the connection type name.

Then I tried creating a new SSIS package and right clicked to add a new connection manager and I got the error

The new connection manager could not be created

I tried installing SQL Server 2005 SP2 and it solved the issue