I would highly recommend against using a shared network drive for doing this. What happens when both of you are working on the project at the same time? You'll continually get a popup in Visual Studio saying "A source file has changed outside the environment, do you want to reload it?". It would be very difficult to have two people working on the same project(s) at the same time using the same file source.
What you should do is use some form of source control. Visual Source Safe is integrated into VS.Net and works pretty well most of the time. Set up a VSS database on your shared server (\\SERVER\VSS), then you can both work on the project independently with separate copies of the code on each of your development machines. Periodically you can get the latest version from source control.
Here's a thread related to this issue.
Peter
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Work smarter, not harder.