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When you get the following error “The tools version “4.0? is unrecognized” or for any other version, in Visual Studio 2008, apply the following fix.
Make sure these keys are present in the registry. If not present, add it.
This should resolve this issue.

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild]
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild\3.5] 
"DefaultToolsVersion"="2.0"

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild\ToolsVersions]
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild\ToolsVersions\2.0] "MSBuildToolsPath"="C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\"

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild\ToolsVersions\3.5] "MSBuildToolsPath"="C:\WINDOWS\Microsoft.NET\Framework\v3.5\"

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSBuild\ToolsVersions\4.0] "MSBuildToolsPath"="C:\WINDOWS\Microsoft.NET\Framework\v4.0.20506\"

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