Problem 

On a previous Windows XP SP2 build VWD Express 2008 would crash when I selected the new split view.

Solution 

This post referred to a problem with Office 2000 and although I am running Office 2003, it is not 2007 which seemed to be the key.

Compatibility problem between VS 2008 and Office 2000 and how to fix it

I checked out my path environment variable and did not have any references to Office 2003.

Just to see what would happen I added the follow :

C:Program Files\Microsoft Web Designer Tools\VWD

as the first item in the path variable (Note : Default install path). One reboot later and the split view was working. Therefore it did seem to be a problem with the version of fpcutl.dll Visual Web Developer Express was using.

Since encountering this issue I recently had machine reinstall, same Windows XP SP 2, same Office 2003 and installed VWD Express 2008. This time no there were no problems at all. Still it is worth trying the path changed if a reinstall is not available to you.