Torque Demo linking error

I tried to open the Torque SDK.sln inside the vc7 folder of torque SKD folder. I got the error
that "the specified file in not a valid file"
then I tried to open the Torque SDK.dsw file
It asks to convert it into VC 7.0 format and when clicked on yes to all it converts it properly. When I started to build it gives an error message:
LIBCMT.lib(dosmap.obj) : error LNK2005: __dosmaperr already defined in LIBCD.lib(dosmap.obj)
LIBCMT.lib(close.obj) : error LNK2005: __close already defined in LIBCD.lib(close.obj)
LIBCMT.lib(read.obj) : error LNK2005: __read already defined in LIBCD.lib(read.obj)
LIBCMT.lib(lseek.obj) : error LNK2005: __lseek already defined in LIBCD.lib(lseek.obj)
LIBCMT.lib(osfinfo.obj) : error LNK2005: __set_osfhnd already defined in LIBCD.lib(osfinfo.obj)
LIBCMT.lib(osfinfo.obj) : error LNK2005: __free_osfhnd already defined in LIBCD.lib(osfinfo.obj)
LIBCMT.lib(osfinfo.obj) : error LNK2005: __get_osfhandle already defined in LIBCD.lib(osfinfo.obj)
LIBCMT.lib(osfinfo.obj) : error LNK2005: __alloc_osfhnd already defined in LIBCD.lib(osfinfo.obj)
LIBCMT.lib(osfinfo.obj) : error LNK2005: __open_osfhandle already defined in LIBCD.lib(osfinfo.obj)
LIBCMT.lib(mbctype.obj) : error LNK2005: __getmbcp already defined in LIBCD.lib(mbctype.obj)
LIBCMT.lib(mbctype.obj) : error LNK2005: __setmbcp already defined in LIBCD.lib(mbctype.obj)
LIBCMT.lib(mbctype.obj) : error LNK2005: ___initmbctable already defined in LIBCD.lib(mbctype.obj)
LIBCMT.lib(write.obj) : error LNK2005: __write already defined in LIBCD.lib(write.obj)
LIBCMT.lib(lseeki64.obj) : error LNK2005: __lseeki64 already defined in LIBCD.lib(lseeki64.obj)
LINK : warning LNK4098: defaultlib 'LIBCMT' conflicts with use of other libs; use /NODEFAULTLIB:library
../tools/texture2bm8_DEBUG.exe : fatal error LNK1169: one or more multiply defined symbols found

How to fix this problem. Please somebody help. Also why is VC 7 sln no opening in
VC .net.

Thanks