When you upgrade a project to 4.0, you may need to do the following to make it compile. The reasos is because the reference has gone through some structure changes.
System.Core.dll 3.0 - to remove (System.Core has merged into System in .4.0)
WindowsFormsIntegration - upgrade to 4.0 (old does not work with 4.0)
WindowsBase - upgrade to 4.0 (old does not work with 4.0)
System.Windows.Forms - Add to 4.0
If your project has xaml files, you will need to have the
System.Xaml.dll - added to build with new files.
PresentationCore.dll - upgrade
PresentationFramework.dll - upgrade
UIAutomationProvider - upgrade