First time compile produces this:

Couldn't determine program size:    text         data          bss          dec          hex      filename

Not much of bug but it might uncover something else...

1. Restart VS 2012
2. Found under TOOLS |Options | Visual Micro  Select Compiler | Verbose and set true. OK.
3. Then FILE | Open | Arduino Project select .sln of the project
4. Output window shows:
Intellisense | Summary: Header=1 Prototypes=13 Imports=1
5. Start Compile with F5.  Result is:

Compiling 'Blink2' for 'Arduino Ethernet'
Build folder: file://C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet
SketchLibFolders
C:\Program Files\arduino-1.0.1\hardware\arduino\cores\arduino;C:\Program Files\arduino-1.0.1\hardware\arduino\variants\standard;c:\program files\arduino-1.0.1\hardware\tools\avr\avr\include\;c:\program files\arduino-1.0.1\hardware\tools\avr\avr\include\avr\;c:\program files\arduino-1.0.1\hardware\tools\avr\avr\;c:\program files\arduino-1.0.1\hardware\tools\avr\lib\gcc\avr\4.3.2\include\;
Summary: Header=1 Prototypes=3 Imports=0
C:\Program Files\arduino-1.0.1\hardware\tools\avr\bin\avr-g++ -c -g -Os -Wall -fno-exceptions -ffunction-sections -fdata-sections -mmcu=atmega328p -DF_CPU=16000000L -MMD -DUSB_VID=null -DUSB_PID=null -DARDUINO=101 -DVISUALMICRO_COMPILER_VER=1 -I"C:\Program Files\arduino-1.0.1\hardware\arduino\cores\arduino" -I"C:\Program Files\arduino-1.0.1\hardware\arduino\variants\standard" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.cpp" -o "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.cpp.o"
C:\Program Files\arduino-1.0.1\hardware\tools\avr\bin\avr-g++ -c -g -Os -Wall -fno-exceptions -ffunction-sections -fdata-sections -mmcu=atmega328p -DF_CPU=16000000L -MMD -DUSB_VID=null -DUSB_PID=null -DARDUINO=101 -DVISUALMICRO_COMPILER_VER=1 -I"C:\Program Files\arduino-1.0.1\hardware\arduino\cores\arduino" -I"C:\Program Files\arduino-1.0.1\hardware\arduino\variants\standard" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Test1.cpp" -o "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Test1.cpp.o"
C:\Program Files\arduino-1.0.1\hardware\tools\avr\bin\avr-gcc -Os -Wl,--gc-sections -mmcu=atmega328p -o "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.elf" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.cpp.o" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Test1.cpp.o" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\core.a" -L"C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet" -lm
C:\Program Files\arduino-1.0.1\hardware\tools\avr\bin\avr-objcopy -O ihex -j .eeprom --set-section-flags=.eeprom=alloc,load --no-change-warnings --change-section-lma .eeprom=0 "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.elf" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.eep"
C:\Program Files\arduino-1.0.1\hardware\tools\avr\bin\avr-objcopy -O ihex -R .eeprom "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.elf" "C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\Blink2\ethernet\Blink2.hex"
Couldn't determine program size:    text         data          bss          dec          hex      filename