TFS Team Build - Build fails if app_code references another project in the solution

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I've using Team Build 2010 for some time, and it suddenly stopped working after some changes in the code.

More specifically, when some file in App_Code used a reference from another project in the solution. I get this error message:

c:\Builds\Venus\Sources\Branches\xxx\xxx\xxx\App_Code\xxx.cs (9): The type or namespace name 'xxx' does not exist in the namespace 'xxx.xxx' (are you missing an assembly reference?)

Is it a known problem? Is there a workaround ?

I already tried deleting and redownloading the whole workspace but got no luck.

Thanks in Advance

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Maslow On

This happened to me after doing a move to a web application project from a web site project. If your project is a web application project, then move the files out of the App_Code folder and delete it.