Can't build a wpf project on a FIPS enabled system

System is Windows 7 Ultimate x64 with Visual Studio Pro 2012 RC

The system has FIPS enabled in the Local Security Policy.

I create a new WPF project, try to build it and get the following errors:

Error 1 Unknown build error, 'This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms. Line 8 Position 3.'  c:\users\administrator\documents\visual studio 11\Projects\WpfApplication2\WpfApplication2\App.xaml  8 3 WpfApplication2
Error 2 Unknown build error, 'This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms. Line 8 Position 3.'  c:\users\administrator\documents\visual studio 11\Projects\WpfApplication2\WpfApplication2\MainWindow.xaml 8 3 WpfApplication2

Is there anyway to build a WPF project on a FIPS enabled PC?

Thanks,
Vince