The doc is fine as it says: "The absolute path of the directory where the MSBuild binaries that are currently being used are located". So, for example, in .NET 3.5 it's usually something like C:\WINNT\Microsoft.NET\Framework\v3.5 where MSBuild 3.0 binaries are located. BTW, in case of .NET 3.5, C# 3.0 compiler is also located at that folder.