I just got a new desktop computer with Windows 7 Pro as the operating system. I installed Visual Studio 2008 on to this new computer and tried to open a previously existing ASP.
Instead of the "~" I was able to simply change the directory to a relative ".." So, what I originally had that gave me the problem was something like: "~/MasterPage/TheMainMasterPage.master" and this caused me to get the same error message. Changing it to "../MasterPage/TheMainMasterPage.master" fixed everything for me.