"The project location is not trusted." error when in XP Mode

When I open my Visual Studio 2008 project (a VB.NET desktop application), I get the following error message.  

The project location is not trusted.  
\\tsclient\E\  {remainder of project path withheld by me}
Running the application may result in security exceptions when it attempts to perform actions requiring full trust.

***  NOTE:  This error only occurs when I open the project within XP Mode on Windows 7.  ***

Following recommendations in articles I'd Googled, I tried adding a new code group with Full Trust under the Microsoft .NET 2.0 Configuration tool, but either I have done something wrong or this approach is not the answer.  

In the .NET 2.0 configuration tool, I added a new code group ("myCodeGroup") to All_Code, LocalIntranet_Zone, and I set the condition type = URL.

I then specified Full Trust for the following mapping


However this doesn't seem to eliminate the error message.  It seems that it has something to do with the fact that I am running under XP Mode

Who is Participating?
No, it is because you are using UNC path for the project. Please read this article from MS


XP mode is its "own" VM... So you are running the Project in a VM basically... You need to configure the VM correctly.

(You didnt say "Compatibility mode)
casatoneAuthor Commented:
Actually my solution was to move the project to my local drive on a PC not running XP Mode and so I bypassed the UNC issue altogether.

I'm awarding you the points though because you got me thinking about whether or not it was a MUST situation to have the project be on a network location.  I would have preferred it to be on the network, but I've worked around that.

Thanks much for your input.
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