2.0, eh? That's too bad. I'd have hoped they would have fixed this by
now.
Basically, you're running into the issue that every Enterprise
developer hits with VS.NET on a daily basis. There is nothing wrong
with your project. You have nothing misconfigured. Your only sin is
that you have multiple .dlls in your project, and one of them has grown
beyond 640k.
VS.NET has a known issue, where it sometimes locks down a large .dll
and refuses to release it, even when it is trying to build a new
version of that .dll or overwrite an old version. There are
workarounds to make this happen less frequently, but no real solution.
Basically, you need to exit VS.NET and delete the content of ALL your
bin directories whenever this happens. I have a script sitting on my
desktop for this purpose, and I imagine thousands of other developers
do too. It's one of many small inconveniences you learn to live with
when developing in the (otherwise) most productive IDE in history.
Good luck!
Jason Kester
Expat Software Consulting Services
http://www.expatsoftware.com/