After changing the output directory of a visual studio project it started to fail to build with an error very much like:
C:\\Program Files\\Microsoft Visu
I ran into this issue when I had referenced an assembly on a web site project in the GAC that had been since uninstalled, and for some reason that reference triggered a serialization assembly generation, and sgen choked on the reference (since it no longer existed). After removing the reference and turning serialization assembly generation to Off, I no longer had the issue.