Sorry, I have no Visual Studio 8 for test this error. Check makefile for errors.
You don't need it. You should just make sure the output directory exists. Thus within a Makefile preample (or similar) create the target directroy recursively and you are done.
I understand this feature. No problems with implementation. (for ex. I can see to C::B method for a directory creation).
I think when linker error no depended from directory creation.
Loaden can look linker parameters for generated makefile and C::B full command line.
Or, for example, show here full command line for linker from C::B.
Good luck!