It took awhile but i finally got the DTS 2000 Package Designer to work under Microsoft SQL Server Management Studio 2008r.
Its a two step process.
First download and install SQLServer2005_BC.msi and SQLServer2005_DTS.msi
Second revise the systems path file so that C:\Program Files\Microsoft SQL Server\80\Tools\Bin\; is defined before C:\Program Files\Microsoft SQL Server\100\Tools\Bin\;
That's it. You should now be able to view and edit DTS packages.
Refer to social.msdn.microsoft.com/forum/en-US/sqlintegrationservices/thread/bcae9086-4345-4c59-8dd8-9ddeca4edc45/ for additional details.