I use TFS assemblies since workflow assemblies came out. I have never seen the need or desire to use one of the following: 
Copy Build output to the server- Which server? which directory?
- `Copy the assembly output to the following folder (UNC path, e.g. \ server \ share):
- Process - Advanced -
Private Drop Location
I used it in high-level automated banking assemblies, I used tfs build, msbuild and cc.net a lot.
Does it do something that does not set the /p:WebProjectOutputDir or /p:DeployOnBuild=true ? Is this the reason that the Diagnostics β View Logs option is always inactive? 
What is the purpose of the folder to delete?
tfsbuild
Maslow
source share