Why doesn't the AdditionalLibPaths parameter work in MSBuild?

Question

I am trying to specify an additional folder to look for references when doing a command-line compile with MSBuild.

The command line is as follows:

msbuild C:\LUR.NET\LurReports.sln /t:Rebuild
               /p:AdditionalLibPaths=C:\Radio;TargetFrameworkVersion=v2.0 

For whatever reasons, msbuild completely ignores the C:\Radio folder when looking for references. What am I missing here?

P.S. I should mention that this box does not have Visual Studio installed. And the .sln is in version VS2008 and I am compiling it against .NET 2.0.

P.S. I also tried placing double quotes around the path. Did not make a difference.