Personally I would include the classes needed in each project, referenced in their original location, if the "framework" is reasonably stable. If they are well-designed and free of application-specific classes or code, you shouldn't need to modify them much. Really you'd want to avoid modifying them at all, because it would mean recompiling every application that uses them.
Making copies will definitely increase your work, and it will get difficult remembering which copy is the best once you get beyond a couple of applications.
I've tried both, and the first way is definitely better.
Dan LeClair
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