Here's still more info:
The solution consists of these projects:
MVVM.Demo.Client
MVVM.Demo.StockProvider
MVVM.Demo.Tests
The .Client project has a reference to the assembly created by the .StockProvider projects. All projects have been built and the reference is resolved.
The WatchList.xaml file which causes the endless loop in the designer is in the MVVM.Demo.Client project.
Based on my experiments, the problem seems to be related to the following xmlns declaration in the WatchList.xaml file:
xmlns:model="clr-namespace:MVVM.Demo.StockProvider;assembly=MVVM.Demo.StockProvider"
Curiously, if I have MVVM.Demo.Client set as the startup project and then try to open the WatchList.xaml file, the XAML pane of the designer shows the squiggly error: "Assembly MVVM.Demo.StockProvider not found ..." for the above statement. And the designer pane shows the "Problem loading" error.
OK, so I have a reference problem. Except that I can hit F5 and run the app without problems!
But (and this is where it gets really strange) if I have the MVVM.Demo.StockProvider as the startup project and try to open the WatchList.xaml file (in the .Client project), the XAML pane displays OK and the Designer pane displays OK (briefly), but then begins an endless loop, displaying the pane again and again. Then I have to kill VS2008.
If I remove the xmlns declaration (and the XML statements that refer to model) the xaml file will open OK in the XAML and Designer panes.
BTW: I spent 1/2 day completely un-installing/re-installing VS2008 + SP1, and it didn't help.
Any ideas?
Thanks,
DT