SharePoint 2013 & VS 2012 Ultimate

Hi

I'm running the following (all on a single server)

Windows 2008 R2
SQL 2012 
SharePoint 2013
VS Ultimate 2012

When trying to create a SharePoint project I get the following error in VS: "SharePoint not Installed, A SharePoint server is not installed on this computer.."

I've confirmed SharePoint is running and functioning correctly.

Any ideas??

Thanks