Found the answer at least in my case.
Where I learned DNN, we use Web App Projects -- single solutions for each module with the website URL as the Start Url. In versions of Visual Studio prior to 2008, the inherits class was only needed in the main code behind. It was not also needed in the designer code behind.
That is, a web user control in a web app creates one user control, 2 code behind files: WebControl1.ascx, WebControl1.ascx.vb and WebControl1.designer.ascx.vb. In earlier versions of the VS IDE, one inherited Portal Module Base in the main code behind file and called it a day. Now, one has to do what should cause an error -- a 2nd inherit in theoretically the same file.
This was a bear to find. I knew the htmleditor.ascx and it's single vb file in the Text/HTML module worked. I copied it down, overwrote them with my code, got a different error. Conveted to web app ... module blew up. Inheritied DotNetNuke.Entities.Modules.PortalModuleBase into the designer vb file and the module loaded.
This could be change in VS further abstracting the designer file, could be a change in DNN where it doesn't relate the 2 files but at any rate, this is what solved my issue.
So, if you're working with web app projects in 2008 ... this is probably what's creating the error for you.