Source Engine 2009/2007 Thread

Hello Everyone!
Well, let's just get down to the point first of all.
Attempting to use the 'Create a Mod' tool in Source SDK using Source Engine 2009 brings up a dialog, stating that

"Support for creating Total Conversions using the 'Source 2009' engine is not available. Please choose an earlier engine version from the list and try again"

Now this is strange because I had been working on a mod (now dead) earlier this year using 2009. Anyway, after this I try 2007, and first I try hammer, and it seems to be bugged, the grid lines aren't working, it's in the state as it was earlier this year, is there a reason for this, could I switch to 2009 some how? Is it possible to fix 2007 Hammer?

Cheers

EDIT:
Side note, the whole sdk is in the state it was earlier this year, only when using 2007 however.

Edited by: BlabVoid

it seems only 2006 engine is working atm, unless someone knows a fix i'm stuck too.

Edited by: Half_Kill

2009 works perfectly for me. 2006 is borked. all mod configurations which used 2009 now need to be reset and created on 2007 instead.

I figured that, I did it in 2007 and made a Hammer Config for the mod.
Thanks.