The issue can be somewhat annoyingly addressed by moving the .scc files to a temporary folder while testing your app. Obviously this only an issue in a development environment as source safe files do not get published into production. It would still be nice not to have to "work around" this problem.
Let me rephrase Conrad's statement, '...I suggest that you modify your code so that you don't attempt to parse .SCC files as XML documents... ' if I may...
Will there be any plans to modify your code so that you don't attempt to parse .SCC files?