MSBuild doesn’t copy references (DLL files) if using project dependencies in solution

I just deal with it like this. Go to the properties of your reference and do this:

Set "Copy local = false"
Save
Set "Copy local = true"
Save

and that’s it.

Visual Studio 2010 doesn’t initially put:
<private>True</private> in the reference tag and setting “copy local” to false causes it to create the tag. Afterwards it will set it to true and false accordingly.