Are you using "Web Application Project" in Visual Studio 2005?
(yes, the same VS project type which was added as an add-in and later as a part of the Service Pack 1)
If you do, you probably know this screen shot:
Now, if you work with Source Control system you had a problem setting the project to use IIS Web Server. why? because those settings were kept in the .proj file which was saved in the Source Control System.
What the problem with that? it means all team members should have the same Virtual Directory or Websites.
Not any more.
Microsoft published an hotfix (kb 942844) which lets you move this information from the .proj file to the .user file
As you probably know, the .user file is not checked in to the source control, so each user will have its own setting.
You'll need to manually change the .proj file to set SaveServerSettingsInUserFile property (which the hotfix adds) to true (see the kb for exact syntax).
Be sure that all group's developers install it before changing this - as I guess they'll get into problems if they get the updated .proj file without the hotfix installed.