TFS 2010 - Error occurred during copy: Path too long

The short answer is the path length limitation is really annoying, and you're going to have to spend some (more) time tweaking your file/folder structure to make this work.

For example instead of \nas\Build\Drop\MyProject, just do \nas\Build\Drop (or \nas\Builds) since the project name is also in the build name.

Flatten the folder structure in your projects (do you really need a Source folder under MyProject?).

Also, go vote for the UserVoice suggestion for the TFS team to fix the path length limitations: http://visualstudio.uservoice.com/forums/121579-visual-studio/suggestions/2156195-fix-260-character-file-name-length-limitation