An ISV Buddy contacted me regarding a Visual SourceSafe issue his team was experiencing. The issue was described as follows:

I'm using the automation interface to pull files from VSS.  When I reference the 6.0 version of ssapi, everything works fine.  But, when I reference ssapi installed with VSS 8.0 and attempt to pull files from VSS, the files are all pulled to my current working directory instead of the path passed in to the Get function.  Our VSS server is currently running version 6 so I'm thinking that's why ssapi 6 works fine but ssapi 8 doesn't. Specifically, ssapi.dll version 6.0.98.48 works and ssapi.dll 8.0.50215.44 do not work.

After contacting the Visual SourceSafe DL, I was told that you need to pass VSSFLAG_FORCEDIRNO to the get operation if you want to specify a directory. Alternatively, VSS_FORCEDIRYES gets the file and places it in the working directory, ignoring the path that's passed in.

A later post confirmed that if you pass a destination spec without any flags in VSS 6.0, it would automatically place the item in the specified spec. However, Whidbey Beta2 had a bug which broke this functionality. Since then, the bug has been fixed.