I'm having the same problem. I am using an EtherMega.
I made the mistake of installing Arduino 1.0.5 (1.0.4 had been working fine with VS Studio).  Now I get the same symptom.  My vsarduino.h shows:

#ifndef _VSARDUINO_H_
#define _VSARDUINO_H_
//Board = Arduino Mega 2560 or Mega ADK
#define __AVR_ATmega2560__
#define ARDUINO 104
#define __AVR__ 

I removed Arduino 1.0.5 completely,removed the Robot lib, Downloaded Visual Micro again but same problem.

I  did the tool chain reset as above.  No change.

My sketch works fine under Arduino 1.0.4...

Tools>Options>visual micro>

C:\Program Files\arduino\arduino-1.0.4 

The error is:

ompiling 'PixelEtherMega' for 'Arduino Mega 2560 or Mega ADK'
ArduinoRobot.cpp : : In constructor 'RobotControl::RobotControl()':
ArduinoRobot.cpp : 'LCD_CS' was not declared in this scope
ArduinoRobot.cpp : 'DC_LCD' was not declared in this scope
ArduinoRobot.cpp : 'RST_LCD' was not declared in this scope
ArduinoRobot.cpp : : In member function 'void RobotControl::begin()':
ArduinoRobot.cpp : 'MUXA' was not declared in this scope
ArduinoRobot.cpp : 'MUXB' was not declared in this scope
ArduinoRobot.cpp : 'MUXC' was not declared in this scope
ArduinoRobot.cpp : 'MUXD' was not declared in this scope
ArduinoRobot.cpp : 'MUX_IN' was not declared in this scope
ArduinoRobot.cpp : 'BUZZ' was not declared in this scope
Error compiling 

Here it is...

Board Properties
name=Arduino Mega 2560 or Mega ADK
upload.protocol=wiring
upload.maximum_size=258048
upload.speed=115200
bootloader.low_fuses=0xFF
bootloader.high_fuses=0xD8
bootloader.extended_fuses=0xFD
bootloader.path=stk500v2
bootloader.file=stk500boot_v2_mega2560.hex
bootloader.unlock_bits=0x3F
bootloader.lock_bits=0x0F
build.mcu=atmega2560
build.f_cpu=16000000L
build.core=arduino
build.variant=mega
runtime.ide.path=C:\Program Files\arduino\arduino-1.0.4
build.system.path=C:\Program Files\arduino\arduino-1.0.4\hardware\arduino\system
software=ARDUINO
runtime.ide.version=104
vm.core.include=arduino.h
vm.boardsource.path=C:\Program Files\arduino\arduino-1.0.4\hardware\arduino
vm.boardsource.name=boards.txt
vm.platformname.name=

Compiling 'PixelEtherMega' for 'Arduino Mega 2560 or Mega ADK'
Build folder: file://C:\Users\James Brown\AppData\Local\VMicro\Arduino\Builds\PixelEtherMega\mega2560
SketchLibFolders
C:\Program Files\arduino\arduino-1.0.4\hardware\arduino\cores\arduino;C:\Program Files\arduino\arduino-1.0.4\hardware\arduino\variants\mega;C:\Program Files\arduino\arduino-1.0.4\libraries\XIniFile;C:\Program Files\arduino\arduino-1.0.4\libraries\XIniFile\utility;C:\Program Files\arduino\arduino-1.0.4\libraries\XSD;C:\Program Files\arduino\arduino-1.0.4\libraries\XSD\utility;C:\Program Files\arduino\arduino-1.0.4\libraries\XEthernet;C:\Program Files\arduino\arduino-1.0.4\libraries\XEthernet\utility;C:\Program Files\arduino\arduino-1.0.4\libraries\XRobot_Control;C:\Program Files\arduino\arduino-1.0.4\libraries\XRobot_Control\utility;c:\program files\arduino\arduino-1.0.4\hardware\tools\avr\avr\include\;c:\program files\arduino\arduino-1.0.4\hardware\tools\avr\avr\include\avr\;c:\program files\arduino\arduino-1.0.4\hardware\tools\avr\avr\;c:\program files\arduino\arduino-1.0.4\hardware\tools\avr\lib\gcc\avr\4.3.2\include\;
Summary: Header=1 Prototypes=10 Imports=6
Additional Defines: VISUALMICRO_COMPILER_VER=1;
Architecture Tools: C:\Program Files\arduino\arduino-1.0.4\hardware\tools\avr\bin\
GCC: 4.3.2
Sketchbook: file://C:\Users\James Brown\Documents\Arduino
C:\Program Files\arduino\arduino-1.0.4\hardware\tools\avr\bin\avr-g++ -c -g -Os -fno-exceptions -ffunction-sections -fdata-sections -Wall -mmcu=atmega2560 -DF_CPU=16000000L -MMD -DUSB_VID=null -DUSB_PID=null -DARDUINO=104 -I"C:\Program Files\arduino\arduino-1.0.4\hardware\arduino\cores\arduino" -I"C:\Program Files\arduino\arduino-1.0.4\hardware\arduino\variants\mega" -I"C:\Program Files\arduino\arduino-1.0.4\libraries\XIniFile" -I"C:\Program Files\arduino\arduino-1.0.4\libraries\XSD" -I"C:\Program Files\arduino\arduino-1.0.4\libraries\XEthernet" -I"C:\Program Files\arduino\arduino-1.0.4\libraries\XRobot_Control" -o "C:\Users\James .cpp.o"  "C:\Users\James .cpp"  -DVISUALMICRO_COMPILER_VER=1
PixelEtherMega.ino : No such file or directory
Shield.ino : No such file or directory
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area
PixelEtherMega.ino : Warning: only initialized variables can be placed into program memory area 

A bit more (included in email).

Great thanks for the update. Yes they needed to be deleted, renaming libs doesn't work