I think the problem is your Font property in light of the nature of how the Designer works with regard to Panels and their contents. By default the Font of the label inherits from the Font of its container (You can test this by adding a panel to a control, and then add a label to that panel. Then change the Font of the Panel, and viola, your label -- unless you've explicity given it a non-default font -- will update with the new container Font).
So, as it stands, when the control is added to the form, the Font of the label is updated to match the Font of the container, and and endless loop is started.
It looks like you can fix this by giving your label an explicit font when it's created. Something like this seems to work around the problem:
public CustomControlTest()
{
_label = new Label();
_label.Font = new Font("Ariel", 8.5f);
this.Controls.Add(_label);
}
ETA: In response to Hans, I was able to reproduce the crash using the code provided and VS2008, and I was able to avoid the crash by initializing the Font.
ETA2: In my previous ETA, I realized my response may have sounded harsher than I intended. Maybe I should have elaborated to mention that I didn't see the crash until I tried to add the control to a form. Hans is right that in and of itself, that code shouldn't cause Visual Studio to crash...it's when the designer steps in to try to initialize and draw the control that it runs into problems. On that note, how does one add comments directly to another person's post? Is a certain minimum reputation needed?