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Actually this is not the same problem as above, but may be somewhat similar. From the regmon log you provided, it does appear that Visual Build Professional was not able to determine the location of msbuild.exe on your system.
You mention that when you specify the location of devenv, the step worked but you then had other problems. First, it sounds like you are trying to build with msbuild, why don't you instead specify the appropriate location of msbuild.exe? Secondly, what were the problems encountered when specifying devenv?
Does this entry exist in your registry: HKLM\SOFTWARE\Microsoft\.NETFramework\InstallRoot ? From the regmon file, it appears that it does not, which seems to be causing the problem in your situation.
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