After solution load, Visual Studio 2008 removes reference to System from one of project files in solution.
By diff-ing with svn's copy I see that VS removes this block from project file:
<Reference Include="System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089, processorArchitecture=MSIL">
<SpecificVersion>False</SpecificVersion>
<HintPath>..\..\..\Windows\assembly\GAC_MSIL\System\2.0.0.0__b77a5c561934e089\System.dll</HintPath>
</Reference>
If I revert to svn's copy and reload the project, everythig is ok. I am puzzled that this happens on project load, not save. This started happening after I removed Visual Studio 2010 from my machine, and it only happens on this project, other projects seem unaffected.