Web Deployment Package - Visual Studio 2008 Doesn't seem to create the correct output

Question

I'm trying out the web deployment project but the output it produces when I build is not what I'm expecting. The output I get is just a copy of the WebApplication project, (including the project csproj file!) rather than the single merged output assembly as promised in the document. Am I doing something totally wrong here, I'm following this article:

http://msdn.microsoft.com/en-us/library/aa479568.aspx