I need to change the value of Copy local based on the active configuration,
below is the solution I was given to do this, but it requires I manually
edit the project file.

This is where the add in comes into play, I am able to get the list of
references and such from the project object, so I've got it started at
least. However, I'm having trouble with the following:

1) How to add the CopyLocal to the property Configuration once I have the
config (know how to get that)

2) How to retrieve the CopyLocal from the Configuration (probably will be
obvious once item 1 is working)

3) How to set the Private property to $(CopyLocal) once the configs have the
value all set up

4) How to know that private is set to $(CopyLocal) vs. True/False.

Thanks
Wayne

You can conditionally set a property on a basis of current configuration:
Condition=" '$(Configuration)|$(Platform)' == 'Debug|AnyCPU' "

At the top of your *.csproj or *.vbproj you'll find a per configuration
section, so you can just add a new property to that section:

 <PropertyGroup Condition=" '$(Configuration)|$(Platform)' ==
'Debug|AnyCPU' ">

   <CopyLocal>true</CopyLocal>

 </PropertyGroup>

Using this you set the Private attribute on the references on the basis of
the current configuration. If the private attribute is true the "CopyLocal"
is set to true.

   <ProjectReference Include="..\MyProj.csproj">
     <Project>{A4E9A2C2-....}</Project>
     <Private>$(CopyLocal)</Private>
   </ProjectReference>