Vista - How to compile XAML

I need to compile a sinlge .xaml file to .baml file. I know I have to use
MsBuild.exe. However I do not know what target I should use. Propably it is
MarkupCompilePass1 but when I invoke that target I get the following error:

C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\Microsoft.WinFX.targets(317,9):
error MC6000: Project file must include the .NET Framework assembly
'WindowsBase, PresentationCore, PresentationFramework' in the reference
list.

I do have those assemblies in the reference group.

<ItemGroup>
<Reference Include="mscorlib" />
<Reference Include="PresentationDesignDeveloper, Version=0.0.4030.0,
Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a,
processorArchitecture=MSIL">
<SpecificVersion>False</SpecificVersion>
<HintPath>C:\Program Files\Microsoft Visual Studio
8\Common7\IDE\Cider\PresentationDesignDeveloper.DLL</HintPath>
</Reference>
<Reference Include="System" />
<Reference Include="System.Data" />
<Reference Include="System.Xml" />
<Reference Include="WindowsBase" />
<Reference Include="PresentationCore" />
<Reference Include="PresentationFramework" />
<Reference Include="UIAutomationProvider" />
<Reference Include="UIAutomationTypes" />
<Reference Include="ReachFramework" />
<Reference Include="System.Printing" />
<Reference Include="System.ServiceModel" />
<Reference Include="System.Runtime.Serialization" />
<Reference Include="System.IdentityModel" />
</ItemGroup>

Then I tried to use the same .csproj that I use with VS but I got the same
error message. For some reason MsBuild seems not to find the assemblies.

Does anybody have a solution.

Best regards,
Jaakko