How do I target .NET 4.0.3 on XP using Visual Studio 2012? Application fails to run with “not a valid Win32 application”

Question

I have a large application targeting .NET 4.0.3 that needs to run on XP. It builds fine using Visual Studio 2010 SP1 and runs properly on XP.

Building using Visual S

Answer 1

VS2012 Update 1 is supposed to resolve this issue. However, I am not sure what options to use though, is it Toolset under Project Properties->General->Platform Toolset?