How to stop Current Test Item execution and proceed to the next Test Item.

Two things you need to ensure.



First, on your test item, set the "stop on error" property to "Test Item".  That will stop that one test and then proceed to the next without killing your whole project.



Secondly, you will need to create and assign an OnStopTest event handler.  In that handler, you'll want to detect that a failure occurred and then, if there was a failure, reset your environment to your basic starting point.