Terry,
Ok, now we're getting somewhere.
We use Visual Source Safe in our dev environment. Source Safe puts a file named vssver.scc in each and every directory in a solution. When I remove this file from my /CuteSoft_Server/CuteChat/CDQ directory, the error goes away.
I suggest that you modify your code so that you don't attempt to parse .SCC files as XML documents.
Thank you,
-Conrad