Setting MSBuild ToolsVersion not working?

Hi,

I am trying to build a VS2010/SL4.0 MSBuild project on Windows Server 2008 (64bit).

If I open "Visual Studio Command Prompt (2010)" it says:

"Setting environment for using Microsoft Visual Studio 2010 x86 tools."

I type msbuild <myprojectname> and it builds fine.

When I try and build from TeamCity I get strange errors and it appears to be running Version 2.0 of MSBuild even though I have set MsBuild ToolsVersion to 4.0 (and anything else I have tried).

What am I doing wrong?


TIA

Mark

I have attached screen shot of config, a build log and the tcpjox msbuild wrapper that TeamCity produces.