MSbuild runner not running with log of "MSBuild output:"

I just installed Teamcity 5.1.1 on our build server and started up a build using the same MSbuild file as our 4.5 server (different machines).

When I ran a build it started compiling our codebase but errored on something that we determined was the .Net version being out of date (machine had been reformatted recently).

I downloaded and ran the .NET Framework 3.5 SP1 Setup (the 235mb version if you scroll down to "Full Package"), and restarted the box.  Now the machine won't run and msbuild scripts at all.  The msbuild.exe file is right where I expect it after that (C:\WINDOWS\Microsoft.NET\Framework\v3.5\msbuild.exe)

I made some edits to the msbuild files, and now it won't even run any msbuild file at all.  I have the build file path set to test.msbuild although with trash in that field, the logfile outputs the exact same.

Here's my Build Runner settings:

Runner: MSBuild edit »

Type of runner: MSBuild (Runner for MSBuild files)
Build file path: test.msbuild
Working directory: same as checkout directory
MSBuild version: Microsoft .NET Framework 3.5
MSBuild ToolsVersion: 3.5
Run platform: x86
Targets: Build
Command line parameters to MSBuild.exe: none specified
Reduce test failure feedback time: OFF
.NET Code Coverage: disabled
MSTest: disabled
XML report processing: disabled

And here's the build output.
[16:17:57]: Checking for changes
[16:17:57]: Clearing temporary directory: C:\TeamCity\buildAgent\temp\buildTmp
[16:17:57]: Checkout directory: C:\TeamCity\buildAgent\work\branches\sprints\2010-05-11
[16:17:57]: Updating sources: server side checkout...
[16:17:57]: [Updating sources: server side checkout...] Building incremental patch for VCS root: Sprint
[16:17:57]: [Updating sources: server side checkout...] Repository sources transferred
[16:17:57]: MSBuild output:
[16:17:57]: Publishing artifacts
[16:17:57]: [Publishing artifacts] Paths to publish: [BuildArtifacts, teamcity-info.xml]
[16:17:57]: [Publishing artifacts] Publishing artifacts 'BuildArtifacts' to root artifacts directory
[16:17:57]: Build finished
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Could you please attach full list of build agent properties.

Does a build succeeds if you run it from MSBuild on this machine under the same user account?

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I attempted to run msbuild.exe from the command line, and it gave me an initialization error.  I removed .net 3.5 using instructions here, and reinstalled it.  Now it all seems to be building fine.  Thanks for the suggestion, I assumed msbuild was working when I shouldn't have!


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