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Cannot add App_code .cs file to the solution

I have a Shared code file database.cs in App_code folder. The solution was built on .NET 2.0 framework. Everything was working fine, untill few minutes ago, I copied the files, created a new folder and opened the folder as a new Web Site. When I was prompted to upgrade from .NET 2.0 to .NET 4.0, I said Yes.

Now for some reason, database.cs file in App_code folder is not getting included in the solution. When I include the namespace defined inside it abc.xyz.data, while debugging, I get an error  Error 7      The type or namespace name 'NeboWeb' could not be found (are you missing a using directive or an assembly reference?)

Seems like .cs files stored in App_code file is not recognized in other files of the solution.

This thing is not just happening in the new project I created by copying the old working Website folder (straight from inetpub), but even the original folder, which I didn't even touched is not working either.

Any idea, why is this happening !
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1 Solution
the app_code folder should be at the root. Please check the same
pratz09Author Commented:
It is at the root level. Thanks,
pratz09Author Commented:
Build action: compile property was off. Turned it on and it works now. Thanks.
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