Windows 7: Visual Studio 6.0 XPMode VirtualXP\XPMuser rights to Windows7 C: fails

I'm having same issue as posted by Geekster2 in "Granting Windows 7 File
Rights to \\VirtualXP\XPMuser?". Trying to run Visual Studio 6.0 in
XP-Mode to compile project located on Windows 7 Ultimate x64 C: drive
which is mapped in XP-Mode as "C on <my-computer>". Installation of
XP-Mode did the mapping to the Windows 7 C drive automatically. When I try
to do a Build:Clean I get many errors of the form:

Error: Could not delete file "\\tsclient\C\Users\Public\Documents\Projects\ASL400_4Wiper\ASL200\bin\Debug\SystestSuperArm.exe " : Incorrect function.
Build : warning : could not create output directory '\\tsclient\C\Users\Public\Documents\Projects\ASL400_4Wiper\ASL200\bin\Debug'
Error: Could not delete file "\\tsclient\C\Users\Public\Documents\Projects\ASL400_4Wiper\ASL200\bin\Debug\SystestSuperArm.ilk " : Incorrect function.
Build : warning : could not create output directory '\\tsclient\C\Users\Public\Documents\Projects\ASL400_4Wiper\ASL200\App\SystestSuperArm\Debug'
Error: Could not delete file "\\tsclient\C\Users\Public\Documents\Projects\ASL400_4Wiper\ASL200\App\SystestSuperArm\Debug\Systest SuperArm.pdb" : Incorrect function.

If from within XP-Mode I copy the project from the "C on <mycomputer>"
mapped drive to the XP-Mode C: drive the clean and build operations
work fine.



If I try to copy the project from XP-Mode C: drive to mapped Windows 7
drive in one case I got a "Incorrect Function" error during the copy
and in another case it copied the project fine. I tried moving
project to C:\Users\Public\Documents\ on Windows 7 drive as suggested in
Geekster2 post, but still got same error with build:clean operation.
In XP-Mode I am logged into XPMUser which has admin rights.