Hi Sriram,
Accoriding to your description, I understand you want to know how to work
with VS2005 in Diconnected mode with VSS 2005. Please don't hesiste to
correct me if you have misunderstand anything here.

You can disconnect your project from VSS by following steps.
On the File menu, click Source Control, and then click Change Source
Control. In the Change Source Control dialog box, select the project you
want to remove from source control, and click Disconnect.

Reference.
http://msdn2.microsoft.com/de-de/library/aa290068(VS.71).aspx

Please feel free to reply me if you have anything unclear. I'm glad to work
with you.

Hope this helps
Wen Yuan

Hi Sriram,

I just want to check if the issue has been resolved.
Please feel free to let me know if there is anything we can help with.

Have a great day.
Sincerely,
Wen Yuan