Why do I get the error 'Cannot Update Cursor' when I try to build a project that has a form based on a class this is part of another source controled project?

It took forever to resolve this since the compile message gives you no hint to what cursor it cannot update! Anyway, I have a project that contains a class library that has a form class that I am using as the parent to a form in a seperate project. The only way to get the second project to compile is to open the original project, check out the class library, then compile the second project then undo the checkout on the class library from the 1st project. I can't imagine this to be the designed behavior.

Thanks,
Troy