I'm trying to build a web deployment project using TFS automated build process. When I build the project directly in Visual Studio 2008, it works fine. But from TFS, I get the following error:

"C:\Users\tfsservice\AppData\Local\Temp\TestProduct\TestSolution\BuildType\TFSBuild.proj" (EndToEndIteration target) (1) ->

"C:\Users\tfsservice\AppData\Local\Temp\TestProduct\TestSolution\BuildType\TFSBuild.proj" (CoreCompile target) (1:2) ->

"C:\Users\tfsservice\AppData\Local\Temp\TestProduct\TestSolution\BuildType\TFSBuild.proj" (CompileConfiguration target) (1:3) ->

"C:\Users\tfsservice\AppData\Local\Temp\TestProduct\TestSolution\BuildType\TFSBuild.proj" (CompileSolution target) (1:4) ->

"C:\Users\tfsservice\AppData\Local\Temp\TestProduct\TestSolution\Sources\TestSolution.sln" (default target) (6) ->

"C:\Users\tfsservice\AppData\Local\Temp\TestProduct\TestSolution\Sources\WebDeployment\WebDeployment.wdproj" (default target) (48) ->

(CreateVirtualDirectory target) ->

C:\Program Files\MSBuild\Microsoft\WebDeployment\v9.0\Microsoft.WebDeployment.targets(676,5): error : Some or all identity references could not be translated.

I made sure that NETWORK SERVICE account has permission to access all the web folders. Any ideas?