When checking a Visual Studio.NET Solution into a source control repository such as Vault. Make sure you do not include the /bin and /obj folders.
I came across this when I started to get the following error
A failure occurred while attempting to start the compilation
A quick search of MSDN found this note (which didn't work)
After a bit of fiddling with things, I figured out the souce control thing. Hope that helps someone else out there.