During an automated build process I came across an error that MSBuild had thrown – ‘Error parsing the nested project section in solution file’. The problem stems from a change to a GUID for one of the Nested Projects within the Solution File. When comparing a Solution File for a successful build to the failed build I found the GUID had changed. To rectify the error I added a blank text file to the solution, saved the changes to the solution file, removed the text file and re-saved the solution file. This resolved the issues as the next build was successful.
MSB5004 Build Error for VS2008 Solution