OK this is a bug. Flat out. A bug.
Here’s the deal.
Subversion,├é which is my new favorite source control system, creates a hidden folder when you do a checkout called “.svn”. And for some reason, VS.NET will not tolerate a folder that begins with a period in a web project.
It works fine for Class Library projects. It works fine for Windows Forms projects. But when you use a Web Project, it says, “Refreshing the project failed. Unable to retrieve folder information from the server.”
And to make matters worse, this is a known bug. I hate things like this. There is absolutely no good reason for this rule.