I just tried moving over to a new VM (everything was the same as what I was running teeks99-03* on, except it has msvc-12.0 installed as well), and I'm seeing a similar problem.

Both seem to be at:
C:/local/tools_bb/build\feature.jam:781: in expand-composites from module feature

Running:
C:\local>python run.py --toolsets=msvc-10.0 --runner=teeks99-10-win2008-64on64 --bjam-options=address-model=64

Here's the end of my (rather long...700KB+) bjam.log file: 

file C:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64\valgrind_config_check.obj.rsp
"..\libs\pool\test\valgrind_config_check.cpp" -Fo"C:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64\valgrind_config_check.obj"    -TP /Z7 /Od /Ob0 /W4 /WX /GR /MDd /Zc:forScope /Zc:wchar_t /favor:blend /wd4675 /EHs -c
-DBOOST_ALL_NO_LIB=1
-DBOOST_TEST_NO_AUTO_LINK=1
"-I.."
compile-c-c++ C:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64\valgrind_config_check.obj

    call "C:\Program Files (x86)\Microsoft Visual Studio 10.0\vc\vcvarsall.bat" x86_amd64 >nul
cl /Zm800 -nologo @"C:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64\valgrind_config_check.obj.rsp"

valgrind_config_check.cpp
..\libs\pool\test\valgrind_config_check.cpp(2) : fatal error C1083: Cannot open include file: 'valgrind/valgrind.h': No such file or directory
...failed compile-c-c++ C:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64\valgrind_config_check.obj...
...skipped <pC:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64>valgrind_config_check.exe for lack of <pC:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64>valgrind_config_check.obj...
...skipped <pC:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64>valgrind_config_check.pdb for lack of <pC:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64>valgrind_config_check.obj...
...skipped <pC:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64>valgrind_config_check.run for lack of <pC:\local\results\boost\bin.v2\libs\pool\test\valgrind_config_check.test\msvc-10.0\debug\address-model-64>valgrind_config_check.exe...
...failed updating 1 target...
...skipped 4 targets...
...updated 32 targets...
    - valgrind                 : no
warn: Unable to construct ../libs/predef/test/info_as_objcpp
warn: Unable to construct ../libs/predef/test/info_as_objc
C:/local/tools_bb/build\feature.jam:781: in expand-composites from module feature
error: explicitly-specified values of non-free feature <asynch-exceptions> conflict
error: existing values: off on
error: value from expanding  <asynch-exceptions>on : on
C:/local/tools_bb/build\feature.jam:866: in feature.expand from module feature
C:/local/tools_bb/build\property-set.jam:159: in class@property-set.expand from module object(property-set)@106846
C:/local/tools_bb/build\targets.jam:722: in class@main-target.generate from module object(main-target)@20295
C:/local/tools_bb/build\targets.jam:874: in targets.generate-from-reference from module targets
C:/local/tools_bb/build\targets.jam:1245: in generate-dependencies from module object(typed-target)@15369
C:/local/tools_bb/build\targets.jam:1434: in compute-usage-requirements from module object(typed-target)@15369
C:/local/tools_bb/build\targets.jam:1353: in class@basic-target.generate from module object(typed-target)@15369
C:/local/tools_bb/build\targets.jam:757: in generate-really from module object(main-target)@78774
C:/local/tools_bb/build\targets.jam:729: in class@main-target.generate from module object(main-target)@78774
C:/local/tools_bb/build\targets.jam:874: in targets.generate-from-reference from module targets
C:/local/tools_bb/build\targets.jam:1245: in generate-dependencies from module object(alias-target-class)@15379
C:/local/tools_bb/build\targets.jam:1302: in class@basic-target.generate from module object(alias-target-class)@15379
C:/local/tools_bb/build\targets.jam:757: in generate-really from module object(main-target)@78778
C:/local/tools_bb/build\targets.jam:729: in class@main-target.generate from module object(main-target)@78778
C:/local/tools_bb/build\targets.jam:272: in class@project-target.generate from module object(project-target)@15359
C:/local/tools_bb/build\targets.jam:272: in class@project-target.generate from module object(project-target)@1163
C:/local/tools_bb\build-system.jam:707: in load from module build-system
C:\local\tools_bb/kernel\modules.jam:289: in import from module modules
C:\local\tools_bb/kernel/bootstrap.jam:139: in boost-build from module
C:\local\boost\boost-build.jam:17: in module scope from module

Tom