Yes, the extra "lib" produces this warning, the two paths do not match. Not actually sure what goes wrong, the final .lib file does end up in the lib directory even though MSBuild reports it wrong in the build completion message. Short from that bad message, I'd guess at an issue with automatic dependencies. This friction got introduced at VS2010 when they moved from the custom VCBuild to MSBuild.
If you want to get rid of the warning then restore the library project's Output File setting to $(OutDir)$(TargetName)$(TargetExt) and change the Output Directory to ..\..\build\lib\$(Configuration)
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