Got a Win7 box with VS2010 Premium installed on it. Building desktop apps works just fine. But we got this solution with 15 SL4 and 21 desktop projects... Building the SL part of it takes too long. This is very irritating and encourages to drop TDD since every time I run a test it takes ~3 seconds for msbuild to find out that nothing changed and the project should be skipped. The projects are very small and there's nothing fancy in them and we hadn't any problems before we switched from VS2008+SL3. I've heard people complaining abound VS2010 speed in general, but nothing about SL4 build time. Is anyone experiencing same problems and is there any workaround for this?
Do you need that many projects? As a rule of thumb, less is better. You say that the projects are very small, that would be an indication to me that you probably don't need that many.
Don't use it for managing dependencies (cycle avoidance). If you're trying to manage 'units of development' or logical groupings, use namespaces instead.
Physical/project separation is good for keeping test code out of production code, and managing units of deployment, but don't separate it until you're getting something out of it.
Patricks Smaccia wrote a good article on when and when not to create assemblies.
Another way to tackle the problem is to break your solution up into multiple solutions, and use references to the dlls produced by the other solutions. That way, you only build part of it at a time. If you need to work across many dlls at the same time, this is inconvenient, but it's a sign that something is likely to be wrong with the design of your code.
This post on speeding vs.net up with many projects may also help.