I tired the suggestions made by Lev, and I did not have change anything, the settings saved are as per Lev's tips.
I tried your suggestions too, firstly. I tried running the project locally in VS2010 and I still got the same error message.
Then I also verified you other suggestions. All the settings are already saved as you suggested in the project.
Since I am able to re-produce the error when I run it locally, that leads me to believe that is something wrong with the internal configuration of the project or the database.
I created a support ticket and attached the database backup and project file.
Support ticket # is 432881
I hope this will help you resolve this issue I am facing, Anxiously awaiting your response.