Use of the LabVIEW Project (file) with a Source Code Control System

When several developers are working simultaneously on different parts of a system, what are the "best practices" with regards to the Project structure? Should the project file itself be kept under source control? If so how do multiple users coordinate and synchronize their contributions to it? OR instead should each developer have and maintain individual project files? If so how will developer A know about the work done by developer B? Should all developers use a common project file that is stored in a common central location but not under the lock and key of the Source Code Control System (SCCS)? How would that work if multiple people are using it simultaneously?

Is this something that would best be handled by the discipline of the developers themselves in a process similar to the "nightly build" that our text based brethren practice? I.e., at the beginning of a shift check out a fresh copy of the one and only project file, and update all files that are different from those in the SCCS. At the end of the shift check in the work you have completed into the SCCS, and send a copy of your project file to some head guru or committee (or other all knowing magic entity)who will have the responsibility of merging every ones changes to the project file as they saw it when they finished their work, into one common project file for everyone to use the next day.

In some ways I see it may be more practical for each developer to have individual Projects, one for each subsystem that they are working on. Later when development is finished (ha ha) and integration begins, the individual projects become sub-projects in one larger all-encompassing project. But does it (the Project folder) even work that way? Furthermore how would this allow for common code that is reused and shared among developers?