Hi Martin
We have not been able to reproduce the RootNamespace issue. Do you have a sample which illustrates the problem?
I would need more details to understand why you needed to exclude everything except the custom controls to get the conversion to work. What types of problems did you run into? Any information you could provide would be beneficial to help us address these types of problems.
Unfortunately, the designer does not support server side includes and there aren't any plans to do so in the near future. You may want to consider packaging that functionality into user controls or master pages which are fully supported in the tool.
There is a known issue where you can get into this state if the settings.settings file ever gets deleted. The fix for this is to open the Settings.settings file (just double-click it). You should see entries similar to the following for your dynamic urls.
Name Type Scope Value
MyApp_localhost_Service (Web Service URL) User http://localhost:2305/WebSite8/Service.asmx
Notice the type field - it needs to be set to "(WebService URL)" - this is one of the choices in type dropdown. Most likely it is set to be of type String and it is this which causes the error. We are looking at getting this fixed for SP1 of Visual Studio (it is an issue in the core VS code base so WAP cannot fix it directly.)
Bill Hiebert
Visual Studio Web Tools