Jim Lamb has blogged about how to CustomizableOutDir using Team Build 2010 as you might want have the assemblies dropped in a custom Folder structure instead of having all assemblies in one Drop Folder, which is the default behavior.
When applying this workaround to a Solution containing an ASP.Net Project you might be missing the _PublishedWebsites folder in the Drop Folder structure:
Assuming you have configured the Team Build Workflow as Jim suggested:
You can workaround the problem by using a different definition for OutputPath and OutDir in the Webapplication.csproj File:
<PropertyGroup Condition=" '$(Configuration)|$(Platform)' == 'Debug|AnyCPU' ">
<OutDir Condition=" '$(TeamBuildOUtDir)'!=''">$(TeamBuildOutDir)\$(SolutionName)\$(MSBuildProjectName)\</OutDir>
The reason why it’s failing is because the _CopyWebApplication Target will be skipped. To figure out if this is the case you can check your MSbuild log fole the following line:
Target "_CopyWebApplication" skipped, due to false condition; (!$(Disable_CopyWebApplication) And '$(OutDir)' != '$(OutputPath)'
That’s it. The Issue has been already reported via Connect.