Found a fix: VS 2012 shipped without the winxp/server 2003 bootstrap. Fix is to update visual studio 2012 with the latest service pack which adds an option. You need to right-click on each project in visual studio and click options. Under Configuration Properties->General you set the Platform Toolset to Visual Studio 2012 - Windows XP (v110_xp). Then rebuild the solution and it'll work.
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