Not that I like to wish problems on other people, but it’s nice to know there is at least one other person who experienced this problem. It was extremely frustrating as I could reproduce it 100% of the time on every PC that I tired in our organization and it never seemed to show up anywhere else. I suspect that other people may have had the problem but wrote it off as a VS2005 glitch since it only happened under certain conditions.
Ultimately the SF guys came through with a solution, as they always do, and we can move on to the next challenge