I'm trying to create my first windows phone app but i can't find the project type.
Is there any trick to getting the option to appear.
I have the latest update installed.
Did you install the SDK? It has to be checked during the installation process or else you will not have the option available to you.
http://dev.windows.com/en-us/develop/download-phone-sdk
Then the menu point should appear. Note under Windows 8.x the project will be under store apps.