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Sorry, I was wrong. This directory will allways be created. You can only set it's path in the Options/Projects and Solutions/General screen in the Projects location.
But be careful, because it also means that your standard project directory will be this directory. You cannot avoid VS to create this directory.
Mark the file as 'hidden.' Visual Studio won't mess with the visibility setting (or, at least, it didn't when I did it in 2010).