I have a project that was building fine in VS 2008, and then we installed and started using TFS Build, and then we upgraded to TFS 2010. Everything was still fine and build
The Microsoft Windows SDK 7.1 has several installation options. Having only the ".NET Development" child "Tools" checked is apparently not enough to build vcxproj projects, even if they don't include any C++ code (only pre- and post-build steps). Adding the "Visual C++ compilers" option and fully selecting the "Intellisense and Reference Assemblies" checkbox installs the necessary files and settings. I'm not sure if both are necessary, but that combination did work for me.