What a glorious day.  I have installed the hotfix and the problem is solved.  Not that I minded using Virtual PC 2007 to run windows XP so Visual Studio would work.  If, after reading through my blog, you feel you have the same issue where VS crashes accessing remote sites with sourcesafe on them, you will need to get the hotfix from Microsoft.  Contact their support personnel for Visual Studio 2005 and say you want the hotfix for KB Article Number: 935842