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It's a SourceSafe issue--the SourceSafe action invokes the VSS command-line executable (ss.exe) to perform a SourceSafe operation, and that is what is reporting the error message. The SourceSafe action does set the SSDIR environment variable to the path specified in the Database field before invoking ss.exe. It looks like the database path specified is not accessible or doesn't contain a VSS database. You can check the 'Log command-line...' option on the Advanced tab, rebuild and include the ss.exe command-line when contacting MS support.
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