If you open a solution using Visual Web Developer Express 2010 which was created using previous versions of Visual Studio and the solution contains a .Net 3.5 website/Web Application Project with reference to a .Net 3.5 class library project, then when you open the project and choose to continue targeting the .Net 3.5 framework in the upgrade prompt, you may see various warnings such as:
The project 'ClassLibrary1' cannot be referenced. The referenced project is targeted to a higher framework version (4.0)
The project 'ClassLibrary1' cannot be referenced. The referenced project is targeted to a higher framework version (4.0)