I have a peculiar problem with vs .net 2008. I used to have vs .net 2005 but then I
uninstalled it and installed a fresh copy of vs .net 2008 pro edition. This problem only
appeared on vs .net 2008. The problem is:

1. I start vs .net 2008 and open my website. I double click on an aspx file, let's call it
main.aspx. Under "Design" mode I click on a label control then go to the "Properties" pannel, and change the label text from let's say "Hello world" to "How are you". Then I save the changes. However, when I go to the "Source" window, the code still shows "Hello world"
instead of the new text change "How are you". When I refresh my website, the text didn't
change as well. However when I go into the "Source" window and make the text change in there, then the text change does reflect under "Design" mode, also, when I make the text change under the "Source" window and I save the file the changes do get saved correctly.

My computer has full right access to this network drive. A coworker of mine has vs .net 2008
and doesn't have this problem.

Has anybody seen this behavior? Any pointers that you can provide to me?

Double check your settings to make sure there isn't a mistake somewhere, after you double check them, let us know. But it sounds like there is a mistake of where it is saving. It sounds like it is saving to a different folder than the one your viewing on the website.

If you had a permissions problem, you would have seen an error. Therefore, it is saving correctly, just not in the right directory.

This all assuming that you are editing the file DIRECTLY :)