I would like to be able to use MSBuild to build my solution and for it to not copy over any third party dlls the projects reference to the output directory.
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This is the best solution for me. You can set this way default value for Private property for all references and project references. I'm using it for local & server builds. If you need to disable copying references into your bin dir during compilation using VS2010 you have to set < Private > property to False for every (project) reference directly in the project file. Visual Studio and MSBuild set Private properties to True by default.