Problem creating database diagram

I have both SQL Server 2000 and SQL Server 2005 installed on my PC running windows XP SP2.

In the Microsoft SQL Server Management Studio, when I right click Database Diagram in the Object Explorer, I cannot find any option to create a database diagram. What is given is "Working with SQL Server 2000 diagrams".

How can I fix my configuration so that I am able to create database diagrams in the SQL Server 2005?

Did you expand the database diagrams folder first to get the support objects created in the database?

What menu items do you get when you right click on the database diagrams folder?

Also in Help -> about, what version of SQL Server Management Studio do you have installed?

|||1. There isn't anything to expand under the database diagrams folder.
2. Right clicking on this folder gives three items:
a. Working with SQL Server 2000 diagrams
b. Reports --> Custom Report ...
c. Refresh
3. Version info:
Microsoft SQL Server Management Studio 9.00.3042.00
Microsoft Analysis Services Client Tools 2005.090.3042.00
Microsoft Data Access Components (MDAC) 2000.085.1117.00 (xpsp_sp2_rtm.040803-2158)
Microsoft MSXML 2.6 3.0 6.0
Microsoft Internet Explorer 6.0.2900.2180
Microsoft .NET Framework 2.0.50727.42
Operating System 5.1.2600

Hope these info help. Thanks.