[1631] Project folder expected at <physical path>

I am getting this error on a MasterPageFile attribute: 
MasterPageFile="~/Views/Shared/Site.Master" which was generated
automatically by VS 2010 and which is supplied by R# if I mangle the
path and use the suggested fix.  There is a project file at the listed
.  The solution builds and runs.

If I use the path "../Shared/Site.Master" which is a valid path, I don't
get the error, but this seems too dependent on the project's folder
layout to be really best practice.

Thanks.