I created a Visual Studio 2005 project template for creating 'Atlas' (ASP.NET Ajax) applications using the Web Application Project (WAP) structure.
To use my template you will need to have both Web Applications Projects and Atlas installed already. I assume you do or you wouldn't be here. I also assume you installed Atlas in the default location.*
To use this template, download my zip file AtlasWebApplication.zip. Place this zip file (without extracting it) in the Visual Studio user project templates location.
You can find/review this location in the Visual Studio options dialog. Open Visual Studio and on the main menu, click Tools > Options. In the tree, select Projects and Solutions > General. Look at the text box labeled "Visual Studio user project templates location" as shown below. Place my zip file in that location.

On the main menu, click File > New > Project ... In the New Project Dialog, under the "My Templates" section, you will now see a project type called "'Atlas' Web Application Project".

*If you installed Atlas in a different location than the default (which is C:\Program Files\Microsoft ASP.NET\Atlas\v2.0.50727\Atlas), you will need to edit my template. Extract the zip file to a local folder. Open WebApplication.csproj with Notepad. Find the last property group which has this content:
<PropertyGroup>
<ReferencePath>C:\Program Files\Microsoft ASP.NET\Atlas\v2.0.50727\Atlas\</ReferencePath>
</PropertyGroup>
Change the path to your Atlas installation folder. Of course, you can also copy Microsoft.Web.Atlas.dll to any other location and set the path as noted.
Finally, zip the contents back up, name the zip back to the original name (although using another name will not break anything) and make sure the zip file is in the correct location.