There are several things to do to remove a copy of a project
from VSS:
1. Make a backup, as always.
2. Copy the RH project to your new location.
3. Set all the files as writable.
4. As you've discovered, you need to remove the contents of
the miscproperties tag.
5. Delete the cpd and sss files, and maybe the pss file (I'm
not sure of this one, but I'm fairly sure it gets recreated when
you re-open the project).
6. Open the project in RH and add to VSS from within RH. (I
recommend using RH to add into VSS, as this will re-populate the
miscproperties section of the xpj file. If you don't, you have to
manually "open from source control" each time you open the
project.)
You should now have a new project in VSS. And you have
backups, right? (not that I'm paranoid or anything...)
HTH
Amber