Just a quickie that might save you a lot of pain if you are working with schemas and files in UTF8, or that started in UTF8 but you've subsequently changed to unicode...
If you are getting lots of complaints about the encoding changing when you check in, or finding your files suddenly having Foo at the end of each line, make sure Sourcesafe has your files checked in as Binary rather than Text files.
To do this, open up the SourceSafe client, right click the newly added schema, and make sure Sourcesafe has flagged it as Binary instead of Text.
You can also use the Binary_Masks setting in the SRCSAFE.INI or SS.INI files:
Binary_Masks = *.XSD
If you don't do this, you might/will find Sourcesafe corrupting your files. It seems to be worse if you regularly flick between VS.NET Schema editor, BTS schema editor, and XML Spy's schema editor.
For more, see here.