After proper installation of Visual Studio 2005, CATIA, CAA RADE and any needed service packs....

1. Create an empty folder in the desired location with the name of the project
2. Creating the Framework
   • To create a new workspace with a new framework:File -> New CAA V5 Workspace.
      
     
   • Ensure the With: is set to Mkmk
   • Select the folder from step 1 as the "Workspace Directory". Choose the tool Level (which should be populated with as many options as you have versions of CATIA on your computer. Select whichever one you want (most likely the most recent, but remember reverse compatibility issues)
   • Click Next
   • Select "Create new generic framework". This means this program will require no other code (besides the base CATIA code) to run. Select this option. Select Finish.
      
3. The New Framework window will appear and you need to type in a name for your framework (See note 2 below).
4. Framework type = Implementation. An "Interface" is like an abstract base class that you would define for polymorphism needs. Most of the time we just want to access what CATIA already has to offer and we won't be defining new behaviors, so we select "Implementation".
5. Framework function = Development (who knows why).

Note 1
 

1. • To add a new framework to an existing workspace:File -> Add CAAV5 Project -> New Framework.
      
     

Note 2
I like to end my framework name with and F or something to show me where the framework is. The "framework" is sort of like what we consider a VS "Solution". It contains many "modules" which are like VS "Projects".