.NET Framework launch condition ” has AllowLaterVersions property set to ‘true’ and the project contains a managed custom action

We had this issue when converting a project from VS2005 to VS2010 (via VS2008) and the following warning occurred:

.NET Framework launch condition ‘<condition>’ has AllowLaterVersions property set to ‘true’ and the project contains a managed custom action

The ‘AllowLaterVersion’ property gets left in the VDPROJ project file and the VS2010 no longer offers the option to edit it

We simply removed the offending line from the project file