It really depends on the number of anticipated users in your company.
If you are the only developer have limited resources, it will work fine on your machine.

For better security and data robustness you should use your network File server to host VSS. This allows let all developers easily access the resource throughout the company and you can enforce user level security through the domain as well as SourceSafe security. Dont rely on SourceSafe security for much though since anyone who can access the files can hack it.

VSS has low overhead and is a good thing to use especially for shared projects and version integrity. If you accidentally make a bad change, you can revert to an older copy of the file.

If you have any detailed questions, I am glad to assist.