In our case that just isn't doable. Currently the project contains around 85 assemblies being worked on by about 20 developers. A nightly build is the only productive way to get updated code to everyone and a common directory is really the only way to distribute it.
I use bin\debug for personal and/or test projects but in a group environment it just doesn't work. You can read messages from the DOTNET archive, unsubscribe from DOTNET, or subscribe to other DevelopMentor lists at http://discuss.develop.com.
