>have you seen http://blogs.msdn.com/bharry/archive/2007/11/24/update-for-visual-sourcesafe-coming.aspx
>
>

Yep. I installed the CTP of the VSS2005 update w/no change in misbehaviour.

It's interesting that Microsoft is trying to fix a known VS2008 problem that they let get released with a patch to VSS2005 which works fine.