This issue was originally filed by @aam

It seems that VS2010 Express doesn't support project folders. Projects from the project folders are placed on the root level. It's not a problem except when there are project name conflicts.

Currently there are three conflicting pairs of .vcxproj generated from gyp files:
  1) utils/compiler/compiler.gyp:dart2js and dart.gyp:dart2js
  2) editor/analyzer.gyp:analyzer and dart.gyp:analyzer
  3) utils/apidoc/apidoc.gyp:api_docs and dart.gyp:api_docs

First conflict prevents utils_wrapper.dart.snapshot generation, so the build on VS2010 Express fails to complete create_sdk step(no snapshot available).

Solution might be simply to rename targets so that there are no conflicts.
Something like this:
===
Index: editor/analyzer.gyp
===================================================================

--- editor/analyzer.gyp (revision 23521)
+++ editor/analyzer.gyp (working copy)
@@ -21,7 +21,7 @­@
   },
   'targets': [
     {

•  'target_name': 'analyzer',
  

•  'target_name': 'editoranalyzer',
  

         'type': 'none',
         'variables': {
           # The file where we write the class path to be used in the manifest
  Index: dart.gyp
  ===================================================================

--- dart.gyp (revision 23521)
+++ dart.gyp (working copy)
@@ -55,7 +55,7 @­@
       'type': 'none',
       'dependencies': [
         'runtime/dart-runtime.gyp:dart',

•    'utils/compiler/compiler.gyp:dart2js',
  

•    'utils/compiler/compiler.gyp:utilscompilerdart2js',
  

           'utils/pub/pub.gyp:pub',
           'analyzer',
           'compiler',
  @@ -116,14 +116,14 @­@
         'target_name': 'dart2js',
         'type': 'none',
         'dependencies': [

•    'utils/compiler/compiler.gyp:dart2js',
  

•    'utils/compiler/compiler.gyp:utilscompilerdart2js',
  

         ],
       },
       {
         'target_name': 'analyzer',
         'type': 'none',
         'dependencies': [

•    'editor/analyzer.gyp:analyzer',
  

•    'editor/analyzer.gyp:editoranalyzer',
  

         ],
       },
       {
  @@ -163,7 +163,7 @­@
         'target_name': 'api_docs',
         'type': 'none',
         'dependencies': [

•    'utils/apidoc/apidoc.gyp:api_docs',
  

•    'utils/apidoc/apidoc.gyp:utilsapidocapi_docs',
  

         ],
       },
       {
  Index: utils/apidoc/apidoc.gyp
  ===================================================================

--- utils/apidoc/apidoc.gyp (revision 23521)
+++ utils/apidoc/apidoc.gyp (working copy)
@@ -15,10 +15,10 @­@
   ],
   'targets': [
     {

•  'target_name': 'api_docs',
  

•  'target_name': 'utilsapidocapi_docs',
  

         'type': 'none',
         'dependencies': [

•    '../../utils/compiler/compiler.gyp:dart2js',
  

•    '../../utils/compiler/compiler.gyp:utilscompilerdart2js',
  

           '../../runtime/dart-runtime.gyp:dart',
           '../../pkg/pkg.gyp:pkg_packages',
         ],
  Index: utils/compiler/compiler.gyp
  ===================================================================

--- utils/compiler/compiler.gyp (revision 23521)
+++ utils/compiler/compiler.gyp (working copy)
@@ -8,7 +8,7 @­@
   },
   'targets': [
     {

•  'target_name': 'dart2js',
  

•  'target_name': 'utilscompilerdart2js',
  

         'type': 'none',
         'dependencies': [
           '../../runtime/dart-runtime.gyp:dart',

===