file.io.permission error when source on network drive IDE setup?

[cig]

Using VS.Net 2K3 Pro.

My development environment is set up with project & source files on a
network drive and until a recent server hardware failure followed by a
restore/rebuild this worked very well. I now find that the code blows up with
the FileIoPermission error when I try to run either the project in
debug/release mode from the IDE or the built exe from the network drive.

The first time I tried to run a project setup like this the IDE threw up a
dialogue box to force confirmation that this was the way I wanted to work.

The question is how do I reset the IDE and or server security settings (I
have full ownership of all files in question on the server) to allow me to
continue working this way? Creating/running a new project on/from the
network drive doesn't do the trick.

I also tried 'demanding' permission, as per the noddy code below, but no joy.

try
{
// We get past this quite nicely thank you...
FileIOPermission fIoP = new
FileIOPermission(FileIOPermissionAccess.Write, Environment.CurrentDirectory);
fIoP.Demand();
Console.WriteLine("We have permission?");

// ... but it dies the death here.
FileStream fs = new FileStream("fred.txt", FileMode.Open);
Console.WriteLine("Yes.");
Console.Read();

fs.Close();
}
catch(System.Exception ex)
{
Console.WriteLine("{0}", ex.Message);
Console.Read();
}