This Visual Studio bug is sweet!
It concerns Setup & Deployment projects. Whatever you do, don’t set your project’s Output File Name to something like "../MyApp.msi". Visual Studio will traverse up one directory and delete *everything*. If you use a backslash instead of a forward slash, everything is OK. It’s the forward slash that’s the killer. Worse yet, the files that get deleted are NOT available in the Recycle Bin.