Subfolder overwrite issue in Team System RTM
We're having a strange problem with Team System, and we were hoping the RTM would fix it, but it didn't.
One of our projects relies heavily on generated code files. That means we frequently need to replace files in the solution with newer, regenerated versions of existing files.
This team has typically used drag and drop to place the new files in the solution. Unfortunately, we found out that drag and drop to subfolders, for files under Team System source control, has irrational behavior. I created an animated GIF movie to illustrate the problem in a fresh install of Team System RTM:

In the video, I drag and drop a new Class1.cs into to the /Subfolder directory in the solution, intended to overwrite the Class1.cs file that already exists in that folder. What happens is.. bizarre:
- \Subfolder\Class1.cs is overwritten with the new content but never checked out
- \Class1.cs is inexplicably checked out
I demo both drag and drop, and right click "Add file..". Both behave exactly the same way. We've tried a ton of different permutations, and
the common factor seems to be overwriting files in a subfolder. If you drag into the root, or if you drag a new file into the solution, things work as you would expect.
This has caused a number of problems for the team. I hope some of our blog readers can duplicate this, and hopefully offer a solution or workaround!