Progress:
I am able to replace the configs via
http://andrewmyhre.wordpress.com/2008/05/09/making-team-build-and-web-deployment-projects-play-nice-part-2/
Now you need to follow the directions posted by BradleyB. Find the <SourceWebPhysicalPath>…</SourceWebPhysicalPath> element in your Web Deployment Project file. Comment it out and replace it with:
<SourceWebPhysicalPath Condition=”‘$(OutDir)’ != ‘$(OutputPath)’”>$(OutDir)_PublishedWebsites\WebApplication1</SourceWebPhysicalPath>
<SourceWebPhysicalPath Condition=”‘$(OutDir)’ == ‘$(OutputPath)’”>..\WebApplication1</SourceWebPhysicalPath>
The key here is to check the build ouput directory on the server to make sure this path exists as TFS Build will use the project name when publishing to the _PublishedWebsites
<SourceWebPhysicalPath Condition=”‘$(OutDir)’ != ‘$(OutputPath)’”>$(OutDir)_PublishedWebsites\WebApplication1</SourceWebPhysicalPath>
Now I have errors with custom sections...