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I have uninstalled, reinstalled rapaired several times now to get rid of this ApplicationException when I try to create a new project from Project Manager. 
What more can I do?

Atle

Hello Atle,

Most probably you have deleted the Telerik.Sitefinity.dll from _EmptyProject\bin or from the bin of the project you are trying to run. Another reason is a permission issue that blocks the request to the dll. If the problem persists, please open a support ticket and send Sitefinity.exe and the license file you use. You can attach them to an external link or send me FTP credentials. I will get the project manager and run it locally.
Also , make sure that you are not trying to run the project from your desktop.

Kind regards,
Ivan Dimitrov
the Telerik team

Thanks! Got it working again.
I uninstalled, deleted the Sitefinity folder under Program Files, restarted the computer and then reinstalled.