gs/psi/msvc32.mak hardcodes C:, so it can't find the build tools when Windows is installed to another drive. Tested with Vista, but imho it's true for any Windows version and any MSVC version.
Created attachment 5763 [details] msvc32.mak A suggested changed mak file against gs8_70. Sorry I have no proper diff nor HEAD here.
The submitted mak file is quite wrong. The correct solution should auto-detect the location of the microsoft dev tools from the variables its installation sets (such as MSSDK). See my comments in: http://bugs.ghostscript.com/show_bug.cgi?id=691062 Perhaps it is more useful to the discussion if the reporter actually posts what variables his installation sets. (just type "set" in the dev tool prompt).
Reassigning to new email address.
Current build system for MS Windows works just fine.