It works fine if you just run the project (let it automatically compile). But if you want to precompile the whole site into an assembly, or compile it to have control over the assembly name and location, it does not work. Use the build command and watch what happens. It barfs up a lung trying to compile the CuteSoft client files.
For web site developing, I have a real need to precompile the whole application and not just upload everything as is to the host. Sure, that works, but it doesn't fit my model of deployment.