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The latter. Just like @hooovahh explained, the files are copied to a temporary location which can result in longer paths. The output directory for your application determines the location of the temporary folder, which is actually just the name of the executable as a folder (i.e. "Application.exe" but it's a folder). EDIT: Regarding vi.lib, these files also reside inside the "Application.exe" folder. Here is an example for JSONtext: "C:\Code\Repository\builds\Untitled Project 1\My Application\Application.exe\1abvi3w\vi.lib\JDP Science\JSONtext\LVClass Serializer" Here is an example of what it looks like during build.

It can. I believe the actual building will take place near the project in a hidden folder. So if your project is in C:\Code\Repository\Project Name, then you will have a folder like C:\Code\Repository\Project Name\Hidden Folder\VI.lib\... with all the code in it. So the full path to the reuse and project can be an issue. Shortening either is useful if that is the issue you are having. This was a much bigger issue in the XP days, where people would have source code checked out in their user folder, which was C:\Documents and Settings\Users\User Name\My Documents