There has been a few posts about this particular problem on the MSBuild MSDN Forum. Those posts are at:
It seems like Team build is not using the msbuild object model to get those evaluated properties, but instead are simply extracting the text value from those property declarations.
I tried to overwirte it in different places in the project file as well, with no luck. It always took the first declaration. I'm guessing that the property is not able to be overwritten because it is passed in as a command line parameter to msbuild.exe by team build. But there is a workaround that solves some of the issues. In your TFSBuild.proj file, modify the DropLocation to one that doesn't use any properties and insert the following towards the bottom:
<Output TaskParameter="Value" PropertyName="DropLocation"/>
<Message Text="Drop loc: $(DropLocation)" Importance="high"/>
This prepends the FixDropLocation to the DropBuildDependsOn list of targets, so it will be executed before the DropBuild target. This cause your project drop files to be dropped in the location tat you want. This is able to overwrite the DropLocation property becuase we are using the CreateProperty task to overwrite this instead of the normal property declaration.
This is not however a perfect solution, because your build log will always be located in the DropLocation that was originally declared (the one w/o the property embedded within it). And in the Team build type history the drop location will also have this location as well. But it does place the files where you want them :)
Unfortunately it looks like the DropLocation that is given to TFS is happening outside the scope of MSBuild so I'm not sure you have a lot of options. You can't even pass this as a command line parameter to the tfsbuild.exe utility either. Let me know if this is not clear.
Sayed Ibrahim Hashimi