Simple issue with web service

Hi all,
I have a solution with 3 projects. Two of these 3 projects are windows dll projects. One is Data access layer project and the other is a core project. The third project is a webservice which contains .asmx files and respective .cs files that reference the 2 class libraries. Let us say the physical paths of the solution, webconfig and web service files are:

Quote:

D:\...\MyWebApp\
D:\...\MyWebApp\Web.config
D:\...\MyWebApp\WebService.asmx

Now, when the website is build, another directory is created inside the working directory as:

Quote:

D:\...\MyWebApp\MyWebApp\

And in this file, it makes copies of all the folders and files in the parent MyWebApp directory. I do not know why it does this? Ideally, it should only have references to the dlls and pdbs and those should rest in bin directory of the ewb application. Now, the problem arises with this when there is any change made to a file and checked in source control. If the changes are made to the class library .cs files, those are not updated in the child MyWebApp directory due to its read only status put by source control. Hence there are multiple errors.
What I want is, the application should create a child MyWebApp directory, but should only copy necessary files in it. Further more, there is a grand child directory in child MyWebApp directory as well that is being created with the same files being copied.

Quote:

D:\..\MyWebApp\MyWebApp\MyWebApp\

I believe there is a way to set the references right and organize the directory structure for this application. Any clues are much appreciated.
Thanks,
Bhushan