The default working folder of the current project as inherited from its parent cannot be used because the path is too long

This error has the following cause and solution:

• VSS creates working directories for projects by inheriting them from parent projects, then appending on the names of any VSS projects following it.  However, if the name inherited from is a long name, the limit of 260 characters may be exceeded. 

  Either set a new working directory for the project in use, or edit and shorten the working directory for the project inherited from.