I haven’t used powershell as an alternative for cmd with visual studio and .NET SDK stuff, because I was too lazy to fix up the environment variables with the required settings for this. This morning I decided that it was a good idea to finally solve this.
David posted a very handy post on this subject so I’m not going to repeat the exercise here: http://blogs.msdn.com/daiken/archive/2006/11/15/configuring-a-visual-studio-2005-environment-for-windows-powershell.aspx
There’s one cave-at. If you are adding the profile script to a new installation of PowerShell, be sure to loosen the security a bit by execution Set-Executionpolicy RemoteSigned. Otherwise it doesn’t work and you get pretty red letters telling that the script is not signed.