Well, thank you all for your tireless efforts and multiple postings on this thread. I found the solution at
http://www.darkmagic.org/mike/msvc_ref.html
To quote:
In reply to:
SysIncl.dat update removes BASETSD.H dependancy
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Article was written by Michael McGarrah
Tired of BASETSD.H being added as a dependacy of every project. Add it to the x:\Program Files\Microsoft Visual Studio\Common\MSDev98\Bin\Sysincl.dat file and it will no longer be listed as a dependancy.