After a few times around, I discovered that this error is caused by VSS client 6.0d. (SP6 for Visual Studio I believe). I called MS today and got the hotfix. it solved the problem!
The problem manifested in strange ways. Namely, a paritally successful import, but with some items missing.. And the "Project $<Project> has been destroyed and cannot be rebuilt." message in the logs. (And a failed 'load').
Here is an article: http://support.microsoft.com/kb/837417/
The actual hotfix I got was newer than this. The support rep gave me the newest. Either way, it worked!
So, hopefully this can help someone! It's a pain to have to call MS and get the hotfix, but it did fix this problem! I can now import all our VSS DB's!
Woohoo!
Cheers!
-Sean
