Invalid search path

My shop just installed V.S. 2005 onto my computer. V.S. 2002 is still installed on my machine.

My situation is that when I open V.S. 2005, and start a project I receive this Warning:

Warning 1 Invalid search path 'C:\Program Files\Microsoft.NET\FrameworkSDK\Lib\' specified in 'LIB environment variable' -- 'The system cannot find the path specified. ' dohDeathFiles

I've located the correct path, however; I can't find how to correct it. The path above is in the V.S. 2002 folder.

Does anyone have any idea how I can correct this (removing V.S. 2002 is not an option)

Thank you;