Texture2bm8 link error

I get this error when compiling the Torque demo solution after following the instructions for setting up for Visual Studio 7.0.

Can anyone tell me what should be set under the Runtime Library option in the Code Generation properties dialog for the texture2bm8 project? After converting the dsw to a .NET 7.0 solution file it defaults to Single Threaded Debug under the debug configuration.

I got every other project to compile except this one.

Could this be a problem with this project's pre-compiled header?

Thanks in advance!

------ Build started: Project: texture2bm8, Configuration: Debug Win32 ------

Linking...
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

Build log was saved at "file://f:\Torque\SDK\tools\out.VC6.DEBUG\texture2bm8\BuildLog.htm"
texture2bm8 - 15 error(s), 1 warning(s)