[c#] Namespace not recognized (even though it is there)

I have a similar problem with references not being recognized in VS2010 and the answers herein were not able to correct it.

The problem in my solution was related to the extension of the path where the project referenced was located. As I am working with SVN, I made a branch of a repository to do some testing and that branch increased two levels in path structure, so the path became too long to be usable in windows. This did not throw any error but did not recognize the namespace of the project reference. When I correct the location of the project to have a smaller path everything went fine.