I have doing configuration management with Nant and CC.Net for a while now. I my experience I would not recommed using the Nant MSBuild task, instead the easiest way is creating and task, create a .bat file that the task executes. There are several reasons that would recommend using the command line Visual Studio, for one MSI packages are not easily build with Nant, even if you use contrib. Also it should eliminate your Nant continue on error request, Devenv should automatically continue to build even if one project fails. Also if you use this method you will not have to worry about changing nant and nant contrib to handle 3.5. If you used Cruise control you will still see your build output in your XML file.
---------2.0 --------
"C:\Program Files\Microsoft Visual Studio 8\Common7\IDE\devenv" C:\YourProject\YourSoultion.sln /Rebuild release
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"C:\Program Files\Microsoft Visual Studio 9.0\Common7\IDE\devenv" C:\YourProject\YourSoultion.sln /Rebuild release