We are currently migrating all our solutions from 2005 to 2010 (that\'s right, we\'re skipping 2008!). We are also changing our file structure to make some more sense (some
I ran in to this problem today, and it proved to be caused of too long filenames in the project.
This, in turn, was caused by some service references. When a service reference is imported or updated, visual studio generates .datasource files, where the filename is the fully qualified name. This means really long names in some instances.
By googling around, I found hints that it was safe to delete these files. Check this or this out.
Deleting these .datasource files removed the problem.