The SVN repository has been updated to VS2010/XNA4.0 solution & code. If you are building DaggerfallModelling from source please ensure you have the latest version of the .NET Framework 4.0 and XNA Game Studio 4.0. You will also need to be using Visual Studio 2010 (or Express 2010) to load the new project.
A few bugs remain after porting to XNA 4.0. These will be ironed out over the next few weeks.