Problem Adding a New File to an Existing Project Folder

I have recently been experiencing the following problem when I try to
add a new file to an existing project folder (going against a Visual
Source Safe 6 repository).

 

Say I'm on project folder Foo.  Working folder is set correctly and I
try to add a new file to the project folder (say my.file).  What is
happening is that a new sub-project folder named Foo is being created
and the file is being put there (Foo/Foo/my.file).  The new folder
Foo/Foo also includes all of the files that were in the original Foo.

 

Any ideas as to what's causing this behavior?

 

Thanks in advance for any help,

Jim