For VC8, the paths you'll want to (manually) add are:
include: <%vsbase%\vc\include> & <%vsbase%\vc\PlatformSDK\include>
include: <%vsbase%\vc\lib> & <%vsbase%\vc\PlatformSDK\lib>
Note that there's no
vsbase environment set up by the installer, you should grab this from the registry somewhere. Also, iirc the layout changed from VS2003 to VS2005. And I already explained why the installer doesn't modify your env variables