Microsoft ® Visual Basic Compiler has encountered a problem and needs to close.

Error occurred on Visual Studio Team System 2008 Development Edition with Visual SourceSafe 2005.  The error most likely appears while opening solution; checking files into VSS; get latest version while working folder contains a writable copy of a different version of files. The error prevented us from running the application in our development box.  After two days of talking with Microsoft technical support VB.net team and running though many tests, we still had no solution for this problem.  The only useful thing we learned was that this error only occurs for large web applications.  Visual Studio works fine for all other projects but this one.  Since the Microsoft support technician mentioned file reference a couple times, we guessed if a reference was pointing to a file which is not there any longer, some errors will be generated.  We tried to delete everything in the bin folder within the project working folder of VSS.  We got latest version of the solution and rebuilt it.  This large web application compiled and debugged well again.
After the effect, we learned that only the .suo (Solution User Options) file needs to be removed and reloaded from VSS because service references and .dll references are stored in the .suo file.  When .suo file crashed, the VBC error occurred.  It seems the .suo file working in a way like stored themes in a profile.  The .suo file is unique to your environment and your machine.  The .suo file is a structured or compound storage.  The file stored in a binary format.  User information is saved into stream.  The name of the stream is the key that will be used to identify the information in the .suo file.  This .suo problem is not the same problem that caused by a bug in the Visual Studio 2005.  That was a Visual Basic 2005 compiler bug in an ASP.net project when debugging application code by using Edit and Continue feature in the IDE.  There is a hot fix for that bug that you can find at: http://support.microsoft.com/kb/915038