Boo! So next I tried Console with empty project. Well, same error. Link.exe exits with code 1.
Apparently in Microsoft.Cpp.Win32.Targets this is the offending line:
Not enough time before class to mess with it, so whatever. Otherwise things seem pretty nice, typing the little bit I did in the new editor with its anti-aliased text and whatnot was nice, although I remember reading that Intellisense is missing out on lots of normal features in this edition of C++, at least for now? Wonder if Visual Assist X will put these back in.
Oh well, back to '08 for now.