I am using VSS2005 as source control system for private projects.
To make sure you are actually running on the latest bits – it is sometimes desirable to open the projects directly from VSS over your own harddisk. To enable this trick – you need to install a hotfix to VS2005/2008. Without it, some features like "Open from Source Control" will not work at all.
Download this: http://www.microsoft.com/downloads/details.aspx?FamilyID=FAF41EDD-924D-449F-AEFC-9C86DD499720&displaylang=en
and install the bits.
Don’t worry it says CTP – it still works like a charm!
From another blog:
”Why does SourceSafe need an update anyway? Aren't VS plugin interfaces supposed to be backwards compatible? Yes, they are. In fact, there are no changes to the MSSCCI API in 2008; none of the fixes are related to MSSCCI. (3rd party source control developers can now breathe a sigh of relief). The changes come from the way SourceSafe implements Open from Source Control, Add to Source Control, and Share inside Visual Studio. Starting in VSS 2005, these functions let you browse the database inside VS's open/add dialogs instead of hanging off the File -> Source Control menu like most other source control providers. ”
See also this post: http://blog.clauskonrad.net/2009/05/selected-file-is-not-valid-solution.html