Local and Global Resources
In the past, Global Resources were compiled to satellite assemblies, where as local resources were XML files, this usually has some performance penalties when using Local Resources, but in Visual Studio 2008 you can now choose how you would like your Local Resources to be compiled (Not Compiled, Internal or External)
(It's a drop down list on the top right of the resource file), sorry I couldn't add a screen shot since the insert Image/File is disabled for some reason :), maybe next time.
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