Most of my customers want their Drop Location folders organized in sub-folders for each solution instead of getting all DLLs\EXEs in one massy folder.
Instead of customizing csproj as http://stackoverflow.com/questions/2784335/how-can-i-get-tfs-2010-to-build-each-project-to-a-separate-directory and http://social.msdn.microsoft.com/Forums/en/tfsbuild/thread/a62a6f98-ec44-46c1-a0d0-7f441f0db973 suggest, you can update the template of your build and change the output directory to the one you want.
First, open the XAML template and drill down to the compilation activity:
You have Run-MSBuild-for-Project activity. In the Properties window check out the OutDir parameter – That's the one you want to change!
By default, this parameter has outputDirectory variable which directs to Binaries folder of the build in the build machine.
i.e I created a build name TestBuild.
The default OutDir value is D:\Builds\4\Project2010\TestBuild\Binaries
Now, for creating a new folder for each solution, update OutDir parameter with this code:
The Build Will automatically copy OutDir content to the DropLocation folder. Have Fun