The Windows Azure Tools do not call the command line CSPack.exe; they instead call the CSPack custom MSBuild task that ships with the Windows Azure SDK. That said, the two (task and command line utility) have very similar sets of arguments.
You can see how the Tools use the task by examining the Microsoft.WindowsAzure.targets file in:
<Program Files>\MSBuild\Microsoft\VisualStudio\v10.0\Windows Azure Tools\<Tools Version>
By default, the Output window shows only minimal logging during the packaging process. If you want more verbose logging, you can adjust the verbosity via the Tools::Options menu:
Tools::Options::Projects and Solutions::Build and Run::MSBuild project build output verbosity
Set the value to Diagnostic, for example (and prepare to be buried in MSBuild output).
-Phil