After installing Visual Studio 2010, I was surprised to see no support for VSS 2005 integration. After some googling it seems like you need to install a hotfix for VSS integration.

Here is the link: http://archive.msdn.microsoft.com/KB976375/Release/ProjectReleases.aspx?ReleaseId=3479

After installing this, when I opened the project (from the working folder) I did not see any sort of VSS integration. I had to do two more steps to make it work.

1. I had to change my Source Control from TFS to Sourcesafe. You can do this by going to Tools à Options à SourceControl

   

    

2. Then you had to bind your project with VSS after you have opened it from your "Working Folder". You can do this by going to File à Source Control à Change Source Control