Hi,
I just went through the tutorial "Visual Studio 2005 Web Application Project" and I ran into compilation issues with my non-control, classes that were, initially in my App_Code folder. I had converted my web site project to a web app project. For whatever reason, I could not get those classes and namespaces to be recognized.
I realized it must be the build action because the classes are not web content but provide services to those pages like helper functions and so on. I moved these classes to a structured folder, out of the Old_App_Code folder and then for each .cs file, I set the Build Action to Compile. Now my namespaces and classes are recognized.
I hope this helps someone else who may be having this problem. It would also be a good idea to add this to the aforementioned tutorial in regards to the classes placed in the App_Code folder in the original web site project that's to be converted. :)