Just as Michael's statement:
we suggest install developement on Host machine, then connect to VPC working k2 process and others (webforms), then we can use VSTS, VSS, CVS and others tools maintain our source code.
benefit:
1. it's easy and userful, and developement on host machine is faster then in VPC
2. in this way, we can simulate the real environment, because we seldom do developement directly on K2 server, we will do it on client machines.