Configure the Visual SourceSafe settings by choosing Version Control > Show Settings from the menu bar. The VSS Settings window appears.
VSS Settings window: General Pane
You can set managed paths in the Managed Paths pane. See Adding Managed Paths in VSS.
The Asset manager assumes that any files created or accessed within the specified directory are intended for versioning and storage on the central server. When you create a new project move it into the specified directory so it can be managed by the Asset manager.