Every now and then when I build my solution here (with 7 projects in it) I get the dreaded \'Command copy exited with code 4\' error, in Visual Studio 2010 Premium ed.
I faced the same issue in case of XCOPY after build is done. In my case the issue was happening because of READ-ONLY permissions set on folders.
I added attrib -R command before XCOPY and it solved the issue.
Hope it helps someone!