A project is a collection of files (any type) that you store in VSS. You can add, delete, edit, and share files within and among projects. A project has much in common with an operating system folder, but has better support for file merging, history, and version control.
Your projects exist in a VSS database. To open a database, see Open/Close a Database.
Files are stored in projects in the VSS database. You never work with the master copy of the file that is stored in VSS except occasionally to examine it or to compare another copy to it.
VSS provides each user with a copy of the file to read or change in the user's working folder. Although you can view a file without a working folder, in order to really work with VSS it is necessary to set up a working folder. See How to Set a Working Folder.
To learn more about designing and organizing projects, see Designing and Organizing Projects.