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If you are trying to create Sharepoint 2007 Workflow project and receiving error message:

“A 32-bit version of SharePoint Server is not installed. Please install a 32-bit version of SharePoint Server” then try this solution.

1. Install the following:
   • SharePoint Server 2007 SDK and Windows SharePoint Services 3.0 SDK - The Windows SharePoint Services 3.0 software development kit (SDK) contains conceptual overviews, programming tasks, samples, and references to guide you in developing solutions based on Microsoft Windows SharePoint Services 3.0.
   • Visual Studio Extensions for SharePoint ver 1.2 or  ver 1.3 – this addin provides developers with support for building workflow-enabled applications using Windows Workflow Foundation. Compatible with the released versions of the 2007 Microsoft Office system, Microsoft Windows Vista, and the .NET Framework 3.0 Runtime Components
2. Create a new Workflow project with STSDEV or create template Workflow project by yourself according to this tutorial.

References:

1. sharepointbuzz
2. stackoverflow
3. blah!blah!BLOG!!

Development HowTo, Problems, SharePoint, VS2008, Workflows