Vc2005 compile problems with tge 1.5.2

I understand that the latest tge (1.5.2) has vc2005 support, but for some reason mine doen't compile. Can anyone help please??

Output window:

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5>jdapimin.c
5>jctrans.c
5>jcsample.c
6>Linking...
5>jcprepct.c
6>glu2d3d.obj : warning LNK4075: ignoring '/EDITANDCONTINUE' due to '/INCREMENTAL:NO' specification
5>jcphuff.c
6> Creating library .\../lib/out.VC8.DEBUG_FAST/glu2d3d_DEBUG.lib and object .\../lib/out.VC8.DEBUG_FAST/glu2d3d_DEBUG.exp
5>jcparam.c
5>jcomapi.c
5>jcmaster.c
5>jcmarker.c
6>Embedding manifest...
5>jcmainct.c
5>jcinit.c
5>Generating Code...
6>Build log was saved at "file://c:\Torque\TGE_1_5_2\tools\out.VC8.DEBUG_FAST\opengl2d3d\BuildLog.htm"
6>glu2d3d - 0 error(s), 1 warning(s)
5>Compiling...
5>jchuff.c
5>jcdctmgr.c
5>jccolor.c
5>jccoefct.c
5>jcapistd.c
5>jcapimin.c
5>Generating Code...
5>Creating library...
5>Build log was saved at "file://c:\Torque\TGE_1_5_2\tools\out.VC8.DEBUG_FAST\ljpeg\BuildLog.htm"
5>ljpeg - 0 error(s), 0 warning(s)
7>------ Rebuild All started: Project: Torque Demo, Configuration: Debug_FastRelight Win32 ------
7>Deleting intermediate and output files for project 'Torque Demo', configuration 'Debug_FastRelight|Win32'
7>Performing Custom Build Step
7>Access is denied.
7>Project : error PRJ0019: A tool returned an error code from "Performing Custom Build Step"
7>Creating browse information file...
7>Microsoft Browse Information Maintenance Utility Version 8.00.50727
7>Copyright (C) Microsoft Corporation. All rights reserved.
7>BSCMAKE: error BK1506 : cannot open file '..\tools\out.VC8.DEBUG_FAST\abstractPolyList.sbr': No such file or directory
7>Build log was saved at "file://c:\Torque\TGE_1_5_2\tools\out.VC8.DEBUG_FAST\BuildLog.htm"
7>Torque Demo - 2 error(s), 0 warning(s)
========== Rebuild All: 6 succeeded, 1 failed, 0 skipped ==========