0x80131700 Build Error on .NET Micro Framework

The following build error occurs when using .NET Micro Framework project, whether in emulator mode or not.

0x80131700

or

error MMP0000: 0x80131700

Solution by way of a drop-in file available on CodePlex (click here), also contains suggestions about frameworks.

Note: Ran into this problem during an electronics class, Googled the above answer, posting solution here for people to find, for archive and easy future reference.

Description
MetaDataProcessor fails with the above error during the build of .NET Micro Framework project on a computer where only .NET Framework 4.0 is installed (e.g. Visual Studio 2010 on a clean Windows XP Mode virtual machine). To workaround the issue copy the attached MetaDataProcessor.exe.config file into a directory where the .exe file is located (default %ProgramFiles%\Microsoft .NET Micro Framework\v4.1\Tools); alternatively install .NET Framework 2.0+ (3.5 SP1).

File Attachment - MetaDataProcessor.exe.config contents:

<?xml version="1.0" encoding="utf-8" ?> 
<configuration>     
    <startup useLegacyV2RuntimeActivationPolicy="true">         
        <supportedRuntime version="v4.0.30319"/>    
    </startup>  
</configuration>