Upgrade VS Web Site Project to be VS Web Application Project (WAP)

One of my colleagues wanted to upgrade VS 2005 Web Site Project to be VS 2005 Web Application Project.
Then we had an issue with non-compiling files from OLD_APP_CODE folder-they had Build Action as Content (see http://forums.asp.net/p/1065290/1743735.aspx#1743735)
 
And now I’ve read  Rick Strahl‘s post. VS 2008 doesn’t have conversion wizard at all. The process has become fully manual-but well described in Rick’s post From ASP Stock Projects to Web Application Projects in VS 2008
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