msbuild 4.0 actually calling 2.0

Folks,

I've set the MsBuild Version and Toolsversion to 4.0.  When I run a build, msbuild throws an error message.  Looking at the log, I see that msbuild version 2.0 is actually being called (which explains why I can't build - my project was created for the 3.5 and higher version of msbuild)

How do I fix this?

c:\TeamCity\buildAgent\bin\..\plugins\dotnetPlugin\bin\JetBrains.BuildServer.MsBuildBootstrap.exe @xml C:\TeamCity\buildAgent\temp\agentTmp\msbuild51248.teamcity.bootstrap.properties TeamCity MSBuild bootstrap v5.0 Copyright (C) JetBrains s.r.o. Start MSBuild... 'C:\Windows\Microsoft.NET\Framework\v2.0.50727\MSBuild.exe' '@"C:\TeamCity\buildAgent\work\f552fc021f3d331a\trunk\Build\Build.proj.teamcity.msbuild.tcargs" "C:\TeamCity\buildAgent\work\f552fc021f3d331a\trunk\Build\Build.proj.teamcity.patch.tcprojx"' working dir = 'C:\TeamCity\buildAgent\work\f552fc021f3d331a' Microsoft (R) Build Engine Version 2.0.50727.4016 [Microsoft .NET Framework, Version 2.0.50727.4200] Copyright (C) Microsoft Corporation 2005. All rights reserved.