A project is a collection of interrelated files that you store in VSS. You can add, delete, edit, and share files within and among projects. A project has much in common with an operating system folder; however, it provides additional support for file history and file version control.
Your projects exist in a VSS database. Files are stored in projects.
You can read or change a copy of a file in your working folder. See How to Set a Working Folder.
To learn more about how to work with files and projects refer to: