Your setup seems correct, in other words: it should work.
I have a very similar setup for yours, the only thing that differs from the one you have is that I include the full path to nunit-tests.xml , so in my build log you will see:
Invoke NUnit C:\Program Files (x86)\NUnit 2.5.9\bin\net-2.0\nunit-console.exe /xml:C:\somepath\nunit-tests.xml Z:\TFSBuilds\1\Sandbox\Tests\Binaries\Tests.dll
and
Publish NUnit Results C:\Program Files (x86)\NUnitTfs\NUnitTfs.exe -n C:\somepath\nunit-tests.xml -t Sandbox -p "Any CPU" -f Release -b "Tests_20120213.6" -v 2010
In any case, I would go to the Server that runs the builds and try the manual steps in CMD .
EDIT (after requesting delivery of my NUnitTFS-config)
Here it looks very different:
<client> <endpoint address="http://TFS/tfs/Collection/TestManagement/v1.0/TestResults.asmx" binding="basicHttpBinding" bindingConfiguration="TestResultsServiceSoap" contract="Tfs2010.TestResultsServiceV1.TestResultsServiceSoap" name="TestResultsServiceSoap" /> <endpoint address="http://TFS/tfs/Collection/Services/v3.0/IdentityManagementService.asmx" binding="basicHttpBinding" bindingConfiguration="IdentityManagementWebServiceSoap" contract="Tfs2010.IdentityManagementServiceV3.IdentityManagementWebServiceSoap" name="IdentityManagementWebServiceSoap" /> <endpoint address="http://TFS/tfs/Collection/Build/V3.0/BuildService.asmx" binding="basicHttpBinding" bindingConfiguration="BuildWebServiceSoap" contract="Tfs2010.BuildServiceV3.BuildWebServiceSoap" name="BuildWebServiceSoap" /> </client>
I'm hardly an expert here, but what you have as Build/v2.0/BuildService.asmx in the end smells like a TFS2008 configuration.
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