To Resolve this issues you need to change your Target FrameWork in your solutions.
Right click on your Solutions --> Select Properties
Your target framework should be .NET Framework4
Right click on your Solutions --> Select Properties
Wednesday 24 October 2012
The referenced assembly "microsoft.crm.sdk.proxy, Version=5.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35, processorArchitecture=MSIL" could not be resolved because it has a dependency on "System.Web, Version=4.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a" which is not in the currently targeted framework ".NETFramework,Version=v4.0,Profile=Client". Please remove references to assemblies not in the targeted framework or consider retargeting your project. Organization
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