Project Reference Vs File Reference?

Question

References can be added in two ways in a project.

1. Project Reference.
2. File Reference.

But, When to use Project and when to use File refe

Answer 1

I've run into issues on multiple projects where file references just don't cut it. Stale references cause buku problems. Microsoft recommends that we use file references only where necessary:

http://msdn.microsoft.com/en-us/library/ee817675.aspx