Building setups frequently these days, I ran into problems with the setup project. At a certain you will get problems with updating references. Trying to refresh will get you an error. This is a known issue as you can see on the linked page. I found a simple solution. Mesh up .vdproj file in notepad, save, VS will now ask you to reload project and will fail. after that, change the file to its original state. Reload the project with right click in VS, and there you go. Its wacky but it works