How to add the SharePoint 2010 dlls to the references in Visual Studio

With SharePoint 2007 the DLLs in the 12-hive\ISAPI directory (e.g. Microsoft.SharePoint.dll) showed up on the .NET tab in Visual Studio . If you install SharePoint 2010 you will notice that these DLLs are no longer listed on the .NET tab which means that you have to use the Browse option and have to navigate manually to the directory holding these DLLs which can be time consuming.