Custom control design woes

If I create a new UserControl and set up its properties (color and width, for example), it looks just like I want it when I am viewing the control.

If I recompile, the control appears in the Toolbox.

If I drag an instance of the control onto my form, it gets added, but all the properties I set up are ignored: I get the same blank box you see when you originally tell VS2005 to create the control's class.

Why does the designer allow you to set up your custom control's properties, and then ignore them when you try to use the control?

What can I do to fix this?

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