Anyone got that sorted?

To eteach, to work around that you could work with a Web Application Project (aka old style .NET 2003 type project). You can get the VS2005 update to enable that here: http://msdn2.microsoft.com/en-us/asp.net/aa336618.aspx

Then you can right click on folders in your project and select to exclude them from the project.

however, it still doesn't explain the issue. What I've found is that the editor completely misunderstands virtual directories.

Ie
Site1 is located on C:\web\site1\
Site1 has a virtual directory called CuteSoft_Client that points to C:\web\shared\CuteSoft_Client\

When trying to open a page that uses the editor, it causes the error:

Could not find a part of the path 'C:\web\site1\CuteSoft_Client\Editor.cep'.

That's wrong. It's assuming the CuteSoft_Client folder is a physical subfolder of the root folder and totally ignores the virtual directory concept.

Can this be fixed quickly somehow?

Ben