This MSDN thread explains how to fix it.

To summarize:

  • Either disable incremental linking, by going to

    Project Properties 
       -> Configuration Properties 
           -> Linker (General) 
              -> Enable Incremental Linking -> "No (/INCREMENTAL:NO)"
    
  • or install VS2010 SP1.

Edits (@CraigRinger): Note that installing VS 2010 SP1 will remove the 64-bit compilers. You need to install the VS 2010 SP1 compiler pack to get them back.

This affects Microsoft Windows SDK 7.1 for Windows 7 and .NET 4.0 as well as Visual Studio 2010.