I’ve been having frustrations with the v2.0 /Code directory.  Code files in it are dynamically compiled, and that’s great, but I have a /UserControls folder, and I have some usercontrols that have tightly-bound base classes that are also in the /UserControls folder.  In v2.0, to get use these class files, I have to move them to the /Code directory, or they won’t be dynamically compiled, or compiled at all.  And in Whidbey, there is no way to build a web app into a DLL like in VS 2003.  So either I move it to the /Code directory or I’m out of luck.  I want to be able to determine my own file hierarchy in my web project.  I want my class file right next to the user control that depends on it.  I need that class to be compiled to use it.  The solution I would recommend would be to make dynamically compiled folders configurable.  I want to specify multiple folders for dynamic compilation, and I know what I would do.  I’d set to root to be dynamically compiled so that everything would be compiled, and I wouldn’t have to worry about it.  As it stands now, I prefer the VS 2003 method of building code files into a DLL.  Dynamically compiled code isn’t a step forward if it requires taking a leap back by throwing away other functionality.

For those working with Whidbey, don’t rely on the /Code directory staying that way.  It will probably change.  The current though is having /Appllication_Code folders be dynamically compiled instead.  See Van’s comment about that.