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If you have an XNA Game Studio 3.1 project that includes an XACT audio project and plan to upgrade it to XNA Game Studio 4.0, there is an additional manual step you must take to upgrade your XACT project to the newer XACT file format required by XNA Game Studio 4.0.
We updated the XACT tools used by XNA Game Studio 4.0 at the last-minute due to an issue that we discovered shortly before shipping. Unfortunately, we did not have time to add information about how to upgrade XACT projects to the XNA Game Studio 4.0 upgrade documentation. Hopefully this blog post will help folks who run into this issue figure out how to upgrade their XACT projects so they will work correctly with XNA Game Studio 4.0.
Description of the issue
If you have an existing XNA Game Studio 3.1 project that uses an XACT audio project, then you upgrade your project to XNA Game Studio 4.0, you will see an error like the following in the Visual Studio error list when you attempt to compile it with XNA Game Studio 4.0:
The .xap file was created with a version of XACT that is incompatible with the XNA Framework Content Pipeline version used by this project. Refer to the documentation for options to resolve this mismatch.
How to update an XACT project from XNA Game Studio 3.1 to the format required by XNA Game Studio 4.0
Here are some more specific steps you can use to upgrade an XACT project used in XNA Game Studio 3.1 to the version of XACT required by XNA Game Studio 4.0:
Additional notes about this error message
The steps above explain how to upgrade an XACT project created with XNA Game Studio 3.1 to an XACT project that can be used with XNA Game Studio 4.0. However, there are a few different scenarios where the “.xap file was created with a version of XACT that is incompatible with the XNA Framework Content Pipeline version used by this project” error message can occur, so the above workaround may not successfully resolve this error in all cases.
Here are some of the possible configurations where this error will occur:
Thank you it was hard to find but helpfull