I am using VS C# Express 2008 as an example but this seems to apply to all editions including VS2005
Opinion on the internet is that there is a limit to the number of times the WM_SIZE message can recurse down a control hierachy and this limit is due to the size of the windows kernel stack.
It is also suggested that any code (e.g. another application) that hooks into WH_CALLWNDPROC reduces the recursion limit further.
The issue does afflict 32-bit windows but for some reason the recursion limit is larger and most applications avoid it
Rather annoyingly it is only Visual Studio that has enough nested controls to exhibit this issue.
The solution seems to be to ensure WM_SIZE is called iteratively instead of recursively if large numbers of nested controls are going to be used.
Another solution is to have a shallower control hierarchy.
I understand it is also an issue on Windows 7 x64 and that is likely to be as common or more common than 32-bit