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Building Silverlight projects on the Team Foundation Server Build Agent can get messy when you have .xap files around. We stumbled across this issues with a colleague from work (Dani you know, that was you :D) when automating the build agent for a client.

The solution is quite simple, even if not intuitive. What we need to do is to deny the build agent read access to the file avoiding to download it in the first place. So as the download process do not fail, we can perform the build without trying to overwrite a locked file.

Hope this helps.

Technology Automated Build, Silverlight, TFS