I'm working on a build server at the moment, and in the process of moving folders around, I keep getting this error in Visual Studio.NET 2003 when the location of a web project within a solution does not match the URL on the local machine.
To fix this error all you need to do is add a webinfo file. If your using VSS for source control, it's probably a good idea to add the webinfo file to SourceSafe as well as this is not done for you automatically.
If you have a project file c:\Inetpub\wwwroot\Folder\fred.csproj then you need a corresponding webinfo file fred.csproj.webinfo. The contents of the webinfo file looks like this:
<VisualStudioUNCWeb>
<Web URLPath = "http://localhost/Folder/fred.csproj" />
</VisualStudioUNCWeb>
When you go to add this web project to your solution file you actually don't specify “Add Existing Project From Web”, but simply “Add Existing Project”, then browse to c:\Inetpub\wwwroot\Folder\fred.csproj
For some background information on this problem you might want to have a look at Web Projects and Source Control Integration in Visual Studio .NET or Team Development with Visual Studio .NET and Visual SourceSafe
Here is an extract: