Ok so for those of you wanting to compile on Visual Studio 2010 and i’m using Windows 7 (64 bit). Not sure which one caused the problem either it is a security issue or it was WinSDK 7.1. I fixed the Security issues and permissions and used WinSDK 7.0 and got a little further here is the output

1>------ Build started: Project: makepanda, Configuration: Release Win32 ------
1>Build started 1/3/2012 1:09:37 AM.
1>Build:
1>
1> DirectX SDK:
1> Looking for the latest DirectX SDK
1> Using DirectX SDK June 2010
1> Looking for the Dx8 SDK in the registry uninstaller keys
1> Couldn’t find a DirectX 8 SDK
1>
1>
1> sys.platform = win32
1> Visual Studio Install Directory is
1> C:\Program Files (x86)\Microsoft Visual Studio 9.0
1> vcdir set to: C:\Program Files (x86)\Microsoft Visual Studio 9.0
1>
1> Windows Platform SDK:
1> Searching for the latest version
1> Windows 7.1 SDK detected. Enabling special features (multi-touch).
1>EXEC : warning : Could not locate thirdparty package eigen, excluding from build
1>EXEC : warning : Could not locate thirdparty package awesomium, excluding from build
1>EXEC : warning : Could not locate thirdparty package ffmpeg, excluding from build
1>EXEC : warning : Could not locate thirdparty package swscale, excluding from build
1>EXEC : warning : Could not locate thirdparty package fltk, excluding from build
1>EXEC : warning : Could not locate thirdparty package bullet, excluding from build
1>EXEC : warning : Could not locate thirdparty package bullet, excluding from build
1>EXEC : warning : Could not locate thirdparty package bullet, excluding from build
1>EXEC : warning : Could not locate thirdparty package bullet, excluding from build
1> Generating library cache…
1> 1094 File(s) copied
1> 2399 File(s) copied
1> 40 File(s) copied
1> 147 File(s) copied
1> Generating dependencies…
1> —>Number of (possible) tasks left 499
1> (These tasks maybe done already)
1> [ 0%] Building resource object built/tmp/pandaIcon.res
1> Microsoft ® Windows ® Resource Compiler Version 6.1.7600.16385
1>
1> Copyright © Microsoft Corporation. All rights reserved.
1>
1>
1> [ 0%] Building C++ object built/tmp/p3dtoolbase_composite1.obj
1> p3dtoolbase_composite1.cxx
1>dtool/src/dtoolbase/p3dtoolbase_composite1.cxx : fatal error C1033: cannot open program database ‘’
1> Storing dependency cache.
1> Elapsed Time: 2 min 30 sec
1> The following command returned a non-zero value: cl /wd4996 /wd4275 /wd4267 /wd4101 /wd4273 /Fobuilt/tmp/p3dtoolbase_composite1.obj /nologo /c /arch:SSE2 /Idtool/src/dtoolbase /Ibuilt/tmp /Ibuilt/include /Ithirdparty/win-python/include /DMAKEPANDA= /MD /Zi /O2 /Ob2 /Oi /Ot /fp:fast /DFORCE_INLINING /Fdbuilt/tmp/p3dtoolbase_composite1.pdb /DBUILDING_DTOOL /EHa /Zm300 /DWIN32_VC /DWIN32 /W3 dtool/src/dtoolbase/p3dtoolbase_composite1.cxx
1> Build terminated.
1>C:\Program Files (x86)\MSBuild\Microsoft.Cpp\v4.0\Microsoft.MakeFile.Targets(38,5): error MSB3073: The command “cd … & makepanda\makepanda --everything --optimize 3 --installer” exited with code -1.
1>
1>Build FAILED.
1>
1>Time Elapsed 00:02:30.97
========== Build: 0 succeeded, 1 failed, 0 up-to-date, 0 skipped ==========

Build still failed but I believe it to be a Security / permission issue

[Edit]
Please note the error with qedit.h is a compatibility issue with the Windows SDK. this file is not included in the new releases of the SDK. I downloaded the file separately and it compliled perfectly until I got to 35%. not sure if this has anything to do with the next error or not.