TFS build error when building a AX 2012 project

Hello All,

    Receiving a MSbuild error when building a AX 2012 project using build definition from Team explorer. 

Build started 9/4/2012 2:09:53 PM.

Project "C:\AXProject_Local\usr\Data Dictionary\Tables\AccountingDistribution.xpo" on node 1 (default targets).

C:\AXProject_Local\usr\Data Dictionary\Tables\AccountingDistribution.xpo(1,1): error MSB4025: The project file could not be loaded. Data at the root level is invalid. Line 1, position 1.

Done Building Project "C:\AXProject_Local\usr\Data Dictionary\Tables\AccountingDistribution.xpo" (default targets) -- FAILED.

Build FAILED.

"C:\AXProject_Local\usr\Data Dictionary\Tables\AccountingDistribution.xpo" (default target) (1) ->

  C:\AXProject_Local\usr\Data Dictionary\Tables\AccountingDistribution.xpo(1,1): error MSB4025: The project file could not be loaded. Data at the root level is invalid. Line 1, position 1.

    0 Warning(s)

    1 Error(s)

Time Elapsed 00:00:00.08