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VSS allows you to group files according to projects. It also lets you share files across folders or projects.
The point of grouping files by project is pretty self evident; the team working on project Jag can compile all Jag-related files and information in a single repository, including specs, project plans, source code, release files, etc. VSS also has a security feature that lets you set up user groups to restrict access.
The point of sharing is that there's only one instance of a file but that it's accessible at many different locations in VSS. Programmers use this regularly (sharing header/include files, libs, dlls). I also share docs across projects.
In a former position, I maintained my own folder of documentation related files containing everything I'd done. I would then share files with the pertinent project. Each project had a folder containing release files (compiled and ready to ship or build); I would share my help file or user guide in this folder, and when someone was ready to prepare a release, my file was right there with them and it was always the latest version. It also meant a standardized document (such as a tech overview) could be part of many projects. VSS also lets you see where a file is shared, so for example, if I made a change to the tech overview, I could see exactly which projects the change would impact.
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