I need to use different database connection string and SMTP server address in my ASP.NET application depending on it is run in development or production environment.
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I use a NAnt Build Script to deploy to my different environments. I have it modify my config files via XPath depending on where they're being deployed to, and then it automagically puts them into that environment using Beyond Compare.
Takes a minute or two to setup, but you only need to do it once. Then batch files take over while I go get another cup of coffee. :)
Here's an article I found on it.