I got it to work by modifying the build system file C:\Users\dave\AppData\Roaming\Sublime Text 2\Packages\User\msbuild.sublime-build like this:
{
"cmd": ["c:\\Windows\\Microsoft.NET\\Framework\\v4.0.30319\\MSBuild.exe"],
"working_dir": "${project_path:${folder:${file_path}}}"
}
I looked at an existing build configuration that shipped with Sublime to figure it out:
C:\Users\myUser\AppData\Roaming\Sublime Text
2\Packages\Makefile\Make.sublime-build